This time, India limited the export of rice. As part of this, the country has imposed a ban on the export of broken rice. Along with that, they have imposed 20 percent duty on the export of different grades of food products. New Delhi has taken these decisions to increase the supply of rice in the domestic market and keep prices stable.
This information has been reported in a report by the news agency Reuters. It is said that India is the world’s largest exporter of rice. They export it to more than 150 countries. As a result, reduced rice shipments from the country will increase the pressure on rising food prices.
Meanwhile, the Russia-Ukraine war, severe heat wave and drought have increased the price of food products around the world. It is feared that the global food prices will increase further due to India’s ban on rice exports.
India imposes duties on rice exports, which will discourage buyers from buying rice from the country. Besides, they will be encouraged to import food products from rivals Thailand and Vietnam. However, in the meantime, the two countries are continuing to negotiate to increase the price of rice.
However, semi-boiled and basmati rice have been exempted from export duty by the Indian government. It will be effective from September 9.
New Delhi bans export of 100% broken rice. Some poor African countries import what they eat for human consumption.
All India Rice Exporters Association President B. V Krishna Rao said the newly imposed tariffs will affect India’s white and brown rice. Which is more than 60 percent of the country’s exports.
He said, through this duty, Indian rice shipments will become uncompetitive in the world market. Buyers will migrate to Thailand and Vietnam.
India accounts for 40 percent of rice exports in the world. They compete with Thailand, Vietnam, Pakistan and Myanmar in the international market.
Due to the lack of monsoon rains, paddy planting has been disrupted in several states including West Bengal, Bihar and Uttar Pradesh. As a result production has been hampered. Therefore, the price of rice has increased in the local market. In order to curb it, India mainly restricted exports.
India has already banned the export of wheat. At the same time, New Delhi has restricted the export of sugar.