India banned the export of non-basmati white rice on Thursday to mitigate domestic inflation, reports The Guardian. This decision came soon after Russia’s termination of the Black Sea trade initiative which increased wheat and corn prices.
The Indian government said the ban would “ensure adequate availability of non-basmati white rice in the Indian market” and lower prices for domestic consumers.
As the world’s largest rice exporter, India is responsible for over 40 percent of global rice shipments, and non-basmati white rice, the varieties affected by the recent ban account for roughly 25 percent of its exports.
Soon after the ban went into effect, several Asian countries experienced price hikes on rice. Traders expect the prices to continue to rise over the next few days, reports The Guardian.
Last September, India instated a 20 percent duty on international exports to help regulate international demand; however, extreme weather conditions across the world kept demand high. Full Story
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