India’s rice export ban impacts Asian and African nations most

Source: The post is based on the article “India’s rice export ban impacts Asian and African nations most”  published in The Hindu on 27th July 2023

What is the News?

Panic-stricken Non-Resident Indians (NRIs) in the United States are rushing to grocery stores and supermarkets to hoard bags of rice.

The sudden rush to hoard bags of rice in the United States was triggered by the Indian government’s decision to ban the export of non-basmati white rice.

What is the data on India’s rice exports?

Over time, India exported varying quantities of three types of semi/wholly milled rice. Non-basmati white rice took the lead in the last two fiscal years, surpassing basmati rice in export share. 

However, non-basmati white rice, which previously accounted for over a quarter of the exports, has now been banned from exports.

The aim behind the ban was to ensure sufficient availability of rice in the Indian market and to curb the increase in prices domestically.

Note: India did not restrict the export of the other types of semi/wholly milled rice — basmati and parboiled rice.

What will be the impact of India’s rice export ban on other countries?

In FY23, non-basmati white rice from India was purchased by more than 140 countries.

The ban’s most significant impact will be felt in neighboring countries like Nepal and Bangladesh, as well as African nations like Madagascar, Benin, Kenya, and Ivory Coast, and Asian countries such as Malaysia and Vietnam, along with the UAE which are the largest buyers of this rice type. 

The U.S. ranks 34th on the list of non basmati rice imports from India. This suggests that the uproar over rice in the U.S. may be due to reporting bias, as there are 33 other countries more affected by the ban.