India Rice Export banned

#IndiaRiceBanned

#Rice

#indica

India, the world’s largest rice exporter, imposed a ban on non-basmati white rice exports on July 20, 2023, to ensure adequate domestic availability and curb rising local prices.

This move, affecting about 25% of India’s rice exports, was in response to domestic price increases of 11.5% over the previous year and 3% in the preceding month.

Factors such as heavy rains damaging crops and concerns over El Niño’s impact on future harvests contributed to the decision.  

The export ban led to significant disruptions in global rice markets, with non-basmati white rice exports dropping by 93% between August and November 2023 compared to the same period the previous year.

Global rice prices surged by approximately 15%, raising concerns about food security in countries heavily reliant on Indian rice imports, particularly in Africa and Asia.  

In response to improving domestic conditions, India lifted the export ban on non-basmati white rice on September 28, 2024.

The government introduced a minimum export price of $490 per metric ton and eliminated the previous 20% export tariff, aiming to balance domestic supply needs with international demand.  

This policy shift has helped stabilize global rice markets, with prices decreasing by 11% following the resumption of exports. 

India’s actions underscore the interconnectedness of global food systems and the significant impact that national policies can have on international markets.