Top rice supplier India bans some exports

MUMBAI: The world’s largest rice exporter India has banned some abroad gross sales of the grain “with instant impact”, the federal government mentioned, in a transfer that would drive worldwide costs even greater.

Rice is a serious world meals staple and costs on worldwide markets have soared to decade highs because the world grappled with the COVID pandemic, the struggle in Ukraine and the impression of the El Nino climate phenomenon on manufacturing ranges. India would ban exports of non-basmati white rice—which accounts for round 1 / 4 of its whole—the buyer affairs and meals ministry mentioned.

The transfer would “guarantee ample availability” and “allay the rise in costs within the home market”, it mentioned in an announcement late Thursday. India accounts for greater than 40 p.c of all world rice shipments, so the choice may “danger exacerbating meals insecurity in nations extremely depending on rice imports”, information analytics agency Gro Intelligence mentioned in a be aware.

International locations anticipated to be hit by the ban embrace African nations, Turkey, Syria, and Pakistan—all of them already scuffling with excessive food-price inflation—the agency added. International demand noticed Indian exports of non-basmati white rice leap 35 p.c year-on-year within the second quarter, the ministry mentioned. The rise got here even after the federal government banned damaged rice shipments and imposed a 20 p.c export tax on white rice in September.

India exported 10.3 million tons of non-basmati white rice final 12 months and Rabobank senior analyst Oscar Tjakra mentioned different suppliers didn’t have spare capability to fill the hole. “Sometimes the key exporters are Thailand, Vietnam, and to some extent Pakistan and the US,” he instructed AFP. “They gained’t have sufficient provide of rice to switch these.”

Moscow’s cancellation of the Black Sea grain deal that protected Ukrainian exports has already led to wheat costs creeping up, he identified. “Clearly it will add into inflation all over the world as a result of rice can be utilized as an alternative choice to wheat.”

Rice costs in India rose 14-15 p.c within the 12 months to March and the federal government “clearly seen these as pink traces from a home meals safety and inflation standpoint”, scores company Crisil’s analysis director Pushan Sharma mentioned in a be aware. India had already curbed exports of wheat and sugar final 12 months to rein in costs. — AFP