India Bans Rice Exports, Triggers Panic Buying in the U.S.
https://legalinsurrection.com/2023/07/india-bans-rice-exports-triggers-panic-buying-in-the-u-s/As Russia blockades and bombards Ukraine’s grain shipments, India — the world’s biggest exporter — has banned exports of rice. The measure was taken by Prime Minister Narendra Modi’s government as it tries to drive down domestic rice prices following a poor harvest.
The shortage of supply is set to raise prices worldwide. India accounts for 40% of the global rice trade.
The export-bound aromatic basmati rice has been exempted from the ban. “India’s decision to ban the export of non-basmati rice has led to consumers panic-buying and stockpiling Indian rice around the world, driving up prices in the process,” the Canadian broadcaster CBC reported Tuesday.
However, an export ban on cheaper rice varieties is expected to hit the poor third-world countries that are already reeling under high levels of inflation. “Those types, which are cheaper than the fragrant, long-grained basmati, are especially popular in poor places such as Bangladesh, Nepal and parts of sub-Saharan Africa. A reduction in its supply will drive up the prices these countries pay, according to rice traders,” British weekly The Economist noted Wednesday.
India exports a great deal of rice worldwide. They are banning exports of rice, excluding basmati rice. This comes at a time of the Ukraine War when grain shipment is curtailed by Russian attacks.
