India’s Rice Export Restrictions Lead to a 12-year Peak in Global Rice Prices

1. India’s Rice Export Restrictions Lead to a 12 India’s Rice Export Restrictions Lead to a 12- -year Peak in Global Rice Prices Prices year Peak in Global Rice In July, India banned the export of non-white basmati rice, creating havoc in the global rice market after that India imposed a 20% export duty on parboiled rice on August 25. This series of events prominently India’s ban on the export of non-white basmati rice led to a surge in rice prices globally. The global rice market witnessed a significant shift as the Food and Agriculture Organization (FAO) reported that the rice price index reached its peak since September 2011, standing at 129.7 in July. Expected to increase more in the August report due to the 20% export duty on parboiled rice. By limiting the quantity of rice available for export, India reduced the global supply, thereby exerting upward pressure on the rice prices. This move was primarily driven by India’s focus on ensuring domestic food security in the face of uncertain climate conditions and economic disruptions. Understanding India’s Export of Rice Understanding India’s Export of Rice India’s role as the largest producer and exporter of rice cannot be underestimated. During the 2022-23 period, India achieved notable rice exports with 45.6 lakh tons of basmati rice generating $4.8 billion, along with 177.9 lakh tons of non-basmati rice contributing $6.36 billion. This export success was supported by the substantial production of 135.54 million tons in India during the same year.

2. India accounts for 40% share of the global trade in the rice market. Other major rice exporters, Myanmar also looking to put restrictions on rice export. The decision to impose a ban on the export of rice has not only impacted the economies of rice-producing nations but also raised concerns about food security and international trade dynamics. This situation led us to consider the balance between safeguarding domestic food needs and maintaining a predictable international trade environment. While every nation has the right to safeguard and prioritize its domestic needs, these restrictive measures can cause global hunger. Reasons behind the Non Reasons behind the Non- -White Basmati Rice Export Ban White Basmati Rice Export Ban According to the International Food Policy Research Institute (IFPRI), India’s non-white Basmati rice ban is due to the fear of a shortage of rice due to El Nino disruptions as India heads towards the festive season. Experts stated that if the supply of rice remains robust then the government of India will uplift or loosen this ban. In conclusion, the recent surge in the prices of rice is majorly due to India’s decision to impose a ban on the export of non-white basmati rice. FAO Index indicates the 12-year peak in prices of rice. These prices may increase after India’s 20% export duty on parboiled rice. If you want to Buy Basmati Rice In Bulk as a rice importer, or if you are a rice exporter looking to bulk rice export then Tradologie.com offers the perfect platform for your needs. Tradologie facilities bulk agro-commodities trade across the globe including all kinds of rice. Utilizing the Tradologie platform, purchasers have the opportunity to access premium agro-products like rice, wheat, and spices, among other commodities all at flexible prices. If you want to register as a buyer, click here. If you want to register as a seller, click here. To stay updated about the latest developments in the agro-trading sector, follow Tradologie on all social media platforms.