India banned rice exports to control prices

NEW DELHI: In order to keep prices under control, India, the world’s largest supplier of white rice, has banned rice exports.

The government said that it is imposing the ban after a 3 percent rise in retail prices of rice in a month as monsoon rains damaged crops.

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India accounts for more than 40% of global rice exports, but low inventories mean any cut in shipments will push up food prices due to Russia’s invasion of Ukraine last year and bad weather.

The government of India stated in a statement that it has altered the export policy “to ensure adequate availability of non-Basmati white rice in the Indian market and to mitigate price escalation in the domestic market.” Retail prices had increased by 11.5 percent over the previous year, the ministry added.

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The move shows the sensitivity of Indian Prime Minister Narendra Modi’s government to food inflation ahead of general elections due next year.

His administration has extended the ban on wheat exports after halting rice shipments in September 2022. They have also restricted sugar exports due to the decline in sugarcane production this year.