India mulling over banning rice exports amid price surge: report
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New Delhi: India is considering banning exports of most varieties of rice as harmful weather pattern El Nino returns first time in seven years.
The decision to cut rice export by the world’s biggest rice exporter could further push global prices of rice, Bloomberg reported.
Rice is the staple of nearly half of the world’s population and India’s ban will affect major chunk of the world.
Move to ban comes amid concerns of rising domestic prices and risk of more inflation, which has cooled off recently.
With the fear of El Nino looms large, which can damage crops, Benchmark prices have been pushed up to ‘a two-year high’, according to Bloomberg.
The ban will be imposed on non-Basmati rice, the report said citing sources.
India bags about 40 percent of global rice trade and supplies rice to more than 100 countries.
Russia’s invasion of Ukraine caused rise in prices of wheat and corn after imports from both countries were blocked.
Alongside India also banned broken rice exports plus charging a 20 percent duty on exports of white and brown rice.
The report further said that retail price in the national capital surged about 15 percent, while nationwide price rose at 8 percent.