Global rice crisis amid Indian ban on rice export caused panic buying in US markets
There has been a severe rice shortage in the United States amid global rice crisis after India banned the export of rice. Several countries, including India, have announced a ban on the export of rice.
After the recent rains and floods in India, rice prices increased in the local market, after which the Indian authorities have decided to ban the export of rice to control the rising prices in the country.
Meanwhile, the United Arab Emirates has also announced the suspension of rice exports for four months. The ban on rice exports has raised fears of increasing global rice prices.
On July 20, the Indian government banned the export of non-basmati white rice, the largest category of the country’s rice exports, with immediate effect.
It should be noted that India is the largest exporter of rice in the world and due to this decision, the price of rice in the global market is likely to increase further.
India, the world’s biggest rice exporter, banned exports of broken rice and imposed a 20% duty on exports of various other types on Sept. 8 as it tries to boost local supplies and calm prices after below-average monsoon rainfall curtailed planting.
The ban could have a severe impact on countries, particularly in the West and Central Africa regions, that depend on imports to make up for the shortfall in their local production.
West Africa has faced its worst food crisis on record this year, with millions going hungry due to poor harvests and insecurity, while the war in Ukraine has made the region especially vulnerable to food price hikes and shortages.
According to the Indian government, the prices of rice in the local market are constantly increasing. In one year, rice prices increased by 11.5 percent, compared to 3 percent in the last month alone.
On August 8 last year, the government imposed a 20 per cent export duty on export of non-basmati white rice to reduce rice prices in the local market and ensure availability of rice. Despite this, the export of white rice saw an increase.
Rajiv Kumar, executive director of the Rice Association of India, said, “The price of rice has come down by Rs 4 per kg at the national level, the government’s efforts to reduce the price of rice have worked. But at the same time, Thailand and Vietnam have increased rice prices by 10 percent. This will affect global food prices. Our main competition is with Thailand and Vietnam.”
Due to the ban imposed by India in the global market, shopping is taking place in trouble and so far a dealer from Indonesia has booked an advance order for 30,000 tonnes of rice. ‘
On the other hand, after India’s decision last week, long queues of People of Indian Origin were seen at Indian grocery stores in America.
In the wake of global rice crisis, other shopkeepers in major US cities like Texas, Michigan and New Jersey have also restricted the sale of rice by seeing queues outside Indian grocery stores and many shops have made a rule that a customer can buy only one bag of rice.
There has been a severe shortage of rice in the United States, where rice has stopped being available in shops, stores and markets. The American people bought several tons of rice at once with filled trolleys from rice bags and empty rice shelves.
Amid the global rice crisis, the price of rice has been on an upward trend in the current financial year. “Last year, the rate of rice was $ 370 per tonne, while this year it is going to be close to $ 500 from now on.