Red alert for global food inflation as India curbs rice exports

The move by India would further affect countries already dealing with rising hunger and food prices. Rice is the third major agricultural crop in India to face export restrictions this year. The country has already limited wheat and sugar exports, upsetting global markets as it moves toward food protectionism.

The variety that now attracts the export tax accounts for about 60 percent of India’s non-basmati rice shipments, according to B.V. Krishna Rao, president of the Rice Exporters Association. The restriction will benefit suppliers from other major growers such as Thailand, Vietnam, and Pakistan, he said. 

Indian exporters will ask the government to waive taxes on about 2 million tonnes of rice that have already been contracted for exports, but not yet shipped, Rao said. SCMP Reported.

Rice export limits come as planting has decreased by 5.6% this season due to a lack of rainfall in some locations. Monsoon rains have been more than 25% below average in the key growing states of Uttar Pradesh, Jharkhand, and Bihar. During the time, the country got 5% more precipitation than usual.

Source: SCMP