The scanty monsoon rains in India have resulted in a poorer rice crop. The world’s second most populous country has therefore resorted to drastic measures aimed at preventing food prices from rising domestically.
India has banned all exports of so-called broken rice with effect from Friday 9 September. At the same time, it imposed a 20% export duty on any other rice. India is the largest exporter of rice in the world and exports the popular grain to more than 150 countries.
Measures against food price rises
The world’s second most populous country is trying to prevent food prices from rising further and thus making food unaffordable by restricting rice exports. But India is also taking its problem beyond its borders. Indian rice will be lacking on the global market and is unlikely to be replaced by supplies from other countries such as Vietnam or Thailand.
Rice will be more expensive and less available
In other words, rice will become more expensive on the world market and will be added to the list of less affordable foodstuffs alongside cereals. This is also lacking on world markets after its exports from Ukraine were restricted due to the war. India’s rice exports are estimated to fall by at least a quarter as a result.
