Source: TH
Context: IMF chief economist Pierre-Olivier Gourinchas stated that India’s decision to restrict exports of certain types of rice could contribute to food price inflation and should be reversed.
Previously, India has implemented restrictions on non-basmati white rice exports to ensure sufficient availability in the domestic market at reasonable prices. The export ban is also intended to support the ethanol-blending program, reduce costly oil imports, and benefit the animal husbandry and poultry sectors by lowering animal feed costs.
India’s status in rice exports:
India is the second-largest producer of rice in the world, after China. India has become the largest rice exporter globally, accounting for nearly 40% of global rice exports in 2022/23. Non-basmati white rice constitutes approximately 25% of the total rice exported from the country.
Impact of the ban:
- IMF predicts a potential rise of 10-15% this year in international rice prices.
- Countries in Asia and Sub-Saharan Africa, which heavily rely on India as a major supplier of rice, may face vulnerability due to potential disruptions in the rice market.
