NEW DELHI: India, the world’s biggest rice shipper, is considering banning exports of most rice varieties, a move that may send global prices of the food staple higher.
he government is discussing a plan to ban exports of all non-Basmati rice, a news report said, citing people familiar with the matter, who said authorities want to avoid the risk of more inflation before elections.
The ban will affect about 80% of India’s rice exports. While the move may lower domestic prices, it risks sending global costs even higher. India accounts for about 40% of the global rice trade and has sought to tighten trade of some varieties.
Last year, the country banned broken rice exports and imposed a 20% duty on shipments of white and brown rice after Russia’s invasion of Ukraine sent prices of food staples soaring. The country has also restricted wheat and sugar exports.
The benchmark prices of rice have already soared to a two-year high amid fears changing weather phenomenon will damage crops.
