Amid rising domestic prices, India is considering to ban export of most varieties of rice, reported Bloomberg. This comes a day after food inflation data for June showed that it went up to 4.49%.
As per the report, this move by India, the world’s biggest rice shipper, may send already lofty global prices of the food staple higher as the disruptive El Niño weather pattern returns.
The ban would lead to prices rising globally but will reduce the prices within the country. As per Bloomberg, the government is now discussing the plan to ban all the non-basmati rice, adding that authorities want to avoid risk of more inflation before elections.
Uneven rainfall in major rice producing areas has made the prices to go up to 20% in the last 10 days, reported Economic Times.
In 2022, 56 million tonnes of rice were exported by India. India accounts for more than 40% of world rice exports.
Last year, India banned broken rice exports and imposed a 20% duty on shipments of white and brown rice after Russia’s invasion of Ukraine sent prices of food staples like wheat and corn soaring. The country has also restricted wheat and sugar exports.