The export ban is effective immediately on all forms of non-basmati white rice (partially or fully milled, polished or unpolished), after domestic retail prices rose 3% in a month due to heavy rains that caused significant losses, the Food Ministry said in a statement.
“With a view to ensuring adequate availability of non-basmati white rice in the Indian market and to contain the price hike in the domestic market, the government of India has revised its export policy,” India’s food ministry said in a statement, citing an 11.5% increase in retail prices over the past 12 months.
India supplies more than 40% of the world's rice exports. Meanwhile, non-basmati white rice accounts for 25-30% of India's total rice exports. Reuters said that any cut in India's exports could increase food prices due to the impact of the Russia-Ukraine conflict and erratic weather.
According to BV Krishna Rao, President of the Rice Exporters Association of India, the sudden ban could severely affect international buyers as they cannot find alternative suppliers, with customers in Africa being the most affected by this decision.
In fact, unfavorable weather conditions during the spring-summer rice crop prompted the Indian government to take this decision. The delayed arrival of monsoon rains has led to a huge shortage of rains needed for the crop in India till June.
Soon after, heavy rains that have lashed northern parts of India over the past few weeks have devastated newly planted fields in the states of Punjab and Haryana, severely affecting crops.
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