India banned the exports of non-basmati rice on 20 July, in a bid to rein in the high rise in cereal prices in the domestic market.
The government wanted to make sure that the prices of rice don’t inflate just like tomatoes which caused high inconvenience to the public.
India is the second largest producer after China surprising Thailand and Vietnam. India captures around 40% of the global rice trade
India came a long way from being agro-deficient to becoming a self-sufficient country and capturing global trade.
EFFECTS AND UPCOMING CONSEQUENCES OF THE BAN
Over 140+ countries have brought non-basmati rice from India in F23.
The immediate effects would be seen in neighboring countries like Nepal and Bangladesh, African countries.
After the ban of 20 July, according to video and reports, there was panic buying at Indian stores in the US and Canada, driving up prices in the process
The ban majorly would lead to global inflation of cereals and non-basmati rice.
GLOBAL RESPONSE
The international monetary fund (IMF) said it would encourage India to remove the restrictions which would have an impact on global inflation
Pierre-Olivier,The chief economist at IMF expresses his concern, stating that restrictions on export are likely to exacerbate the volatility of food prices in rest of world.
Exporters in India responded that india’s government could consider lifting up ban by the end of the year after assessing kharif production (80%of the share is of rice) for the 2023-24 crop year