Context: India’s temporary ban on non-basmati white rice export poses a threat to the global food supply chain, intensified by the Russia-Ukraine war and the breakdown of the Black Sea Grain Initiative facilitating grain movement from conflict zones.
Key Points:
- Non-Basmati White Rice & Export Share: Constitutes 25% of India’s total rice exports. Last year, India exported 22 million tonnes of rice, with 6 million tonnes as affordable Indica white rice, contributing significantly to global rice trade (estimated at 56 million tonnes).
- India’s Role in Rice Export: India tops global rice exports, accounting for 40% of the global rice trade. Key buyers include China, the Philippines, Nigeria, and “swing buyers” like Indonesia and Bangladesh during domestic shortages.
- Global Impact of Ban: Immediate impacts felt in countries highly reliant on Indian rice imports, such as Malaysia, Singapore, Vietnam, and Thailand. Rise in rice prices foreseen in Vietnam and Thailand due to expected supply disruptions. African and West Asian countries heavily dependent on rice imports face potential challenges.
Impact on Trade and Policy Response:
- Affected Countries’ Response: Singapore seeks exemption from India’s export prohibition. UAE imposes its ban on rice exports and re-exports for four months in response.
- Way Forward: Export policy for Basmati and Non-Basmati rice remains unchanged to support farmers with competitive international prices.
Conclusion:
India’s temporary ban on non-basmati white rice exports poses significant challenges to the global rice trade, affecting various nations heavily reliant on Indian rice imports. While exemptions are sought and trade policies adapt, maintaining exports for Basmati and other rice varieties ensures market stability for farmers amidst these fluctuations.
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