On July 20, India banned the export of all types of rice, except basmati rice which is produced mainly for export, to stabilize rice prices and prevent domestic food shortages due to harsh climate.

In a recently published analysis report, British bank Barclays said that Malaysia appears to be the most vulnerable country due to its heavy dependence on Indian rice. Malaysia mainly imports rice from abroad, of which Indian rice accounts for a relatively large proportion. In addition, Singapore is also likely to be affected as Indian rice accounts for about 30% of its rice imports. Barclays analysts said that Singapore is asking India to exempt it from the rice export ban.

Farmers plant rice in a field in Nagaon, Assam state, India, July 27, 2023. Photo: VNA

Rice prices are currently hovering at their highest levels in a decade as El Nino weather phenomenon brings heavy rains and droughts that affect production in India and other major Asian rice producers. Barclays analysts said the Philippines would be hardest hit by the rise in global rice prices, as rice accounts for the largest share of the country’s consumer price index (CPI) basket.

However, Asia is not the only region affected by India’s rice export ban. According to BMI Research, a research firm at Fitch Solutions, vulnerable markets include sub-Saharan Africa and the Middle East-North Africa (MENA) region, particularly Djibouti, Liberia, Qatar, Gambia and Kuwait.

India’s ban on exports of regular rice has caused concern among consumers accustomed to consuming the staple food, with stores across the world forced to adjust prices and limit supplies as people – mainly South Asians – rushed to stock up.

Statistics show that the price of ordinary rice in India increased by nearly 10% in July. If in September last year, a ton of ordinary rice in India cost about 330 USD, it has now reached 450 USD. India is the world's largest rice producer, accounting for more than 40% of global rice exports.

VNA

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