Recently, the Indian government has implemented a ban on non-basmati white rice export. The government took the step because they wanted to reduce the prices within the country.
The new law can effectively curb the rice prices in India. However, it may have a negative impact on global prices, as the country is the world’s biggest rice exporter.
BBC noted that heavy rains adversely affected its crops. As a consequence, the prices of rice have surged by over 11% in the span of the last 12 months. Moreover, recent uneven rainfall in India’s primary rice-growing areas has contributed to the recent price surge.
According to Reuters, Vietnam’s rice export prices reached their highest level in more than a decade this week. The increase is primarily due to El Nino weather concerns and India’s action.
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Nevertheless, India still allows this rice export under certain conditions. For example, the government will still let the export if the shipment has begun prior to the notification.
According to the Directorate General of Foreign Trade, requests for shipments to other countries will be considered with a focus on fulfilling food security needs.
Farmers can still export other types of rice, such as long-grain basmati. This exemption allows farmers to benefit from remunerative prices in the international market.
source: economictimes.indiatimes.com, bbc.com
