As India prohibited the export of non-basmati rice, more than 140 nations scrambled to acquire whatever was left in their reserves.
The South Asian nation accounts for more than 40% of rice exports worldwide and more than 25% of shipments of white rice.
As the world struggles with food shortages and worries about rising grain prices due to Russia pulling from the Black Sea grain export agreement with Ukraine, this surprise move carries a significant global impact.
Due to seasonal rainfall recorded as the third highest this year and its impact on agricultural production, New Delhi announced it was halting exports.
According to economists, India’s decision to impose an export ban on non-basmati white rice may be an attempt to garner votes by cutting prices before elections.
While India’s Prime Minister Narendra Modi looks to secure votes, Indians in the diaspora are panic-buying rice. Food costs are expected to continue to rise globally. In recent research, the International Monetary Fund showed that a 1% decline in world crops resulted in an increase of 8,5% in food prices.
The IMF notes that food insecurity, social unrest, and financial strain in nations dependent on food imports have all increased due to rising food costs.
