{"id":254841,"date":"2023-08-04T20:18:49","date_gmt":"2023-08-04T14:48:49","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=254841"},"modified":"2023-08-29T18:22:41","modified_gmt":"2023-08-29T12:52:41","slug":"chawal-is-the-new-oil","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/chawal-is-the-new-oil\/","title":{"rendered":"Chawal Is The New Oil"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201c<\/strong>Chawal Is The New Oil<\/strong>\u201d published in The Times of India <\/strong>on\u00a04th<\/sup> August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013Growth & Development<\/strong><\/p>\n

Relevance: <\/strong>About ban on the export of rice<\/p>\n

News:<\/strong> Russia’s decision to abandon the Black Sea grain<\/strong><\/a> deal <\/strong>is contributing to the global food price volatility. Further, India’s ban on exporting certain varieties of rice is further exacerbating the situation as India has a 40% share of world rice exports.<\/p>\n

What are the reasons for imposing a ban on the export of rice?<\/strong><\/h2>\n

Political Reasons: There are political reasons like the upcoming election<\/strong> which has made the government control the rising prices domestically.<\/p>\n

Strategic Reasons:<\/strong> The government is using export restrictions not only for managing domestic inflation but also as a leverage tool.<\/p>\n

In 2022, despite the wheat ban, India made exceptions for discretionary export approvals to support neighboring and vulnerable countries.<\/p>\n

As a result, Egypt, which imported 80% of its wheat requirements from Russia and Ukraine, became the largest recipients of Indian wheat.<\/p>\n

This support from India in the midst of the crisis helped in improving the bilateral relations<\/strong><\/a> between the two countries.<\/p>\n

Hence, India strategically utilized a commodity to safeguard its political interests and it is likely to adopt a similar approach for the recent rice export ban.<\/p>\n

Read More:\u00a0<\/strong>India\u2019s rice export curbs could prove too myopic for its good<\/strong><\/a><\/p>\n

What may be the impact of ban on farmers?<\/strong><\/h2>\n

The ban may upset those farmers who benefit from high-priced exports.<\/p>\n

However, the government has taken this political risk because the<\/strong> number of large farmers with surplus for export or to sell under the MSP is relatively small compared to the majority of Indian subsistence farmers.<\/p>\n

Moreover, while the MSP offers protection to farmers during periods of low global cereal prices, export curbs serve as a trade-off during years of high global prices.<\/p>\n

What lies ahead?<\/strong><\/h2>\n

Using essential commodities, including food for securing geo-political interest is not a new concept. Oil has been often used to secure geo-political interest by the OPEC countries in the response of geopolitical events.<\/p>\n

Even the American President Eisenhower used<\/strong> food to support newly independent developing countries and gain their allegiance against communism.<\/p>\n

Hence, prioritizing critical international relationships through a focused export program offers India greater benefits than a free market approach in cereals trade.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cChawal Is The New Oil\u201d published in The Times of India on\u00a04th August 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013Growth & Development Relevance: About ban on the export of rice News: Russia’s decision to abandon the Black Sea grain deal is contributing to the global food price… Continue reading Chawal Is The New Oil<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-254841","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/254841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=254841"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/254841\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=254841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=254841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=254841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}