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Global Rice Prices Hit 15-Year High After India's Export Ban: UN FAO.
Sep 13, 2023
Rice prices rose globally by 9.8% in the month of August, despite other food prices easing, because of 'trade disruptions in the aftermath of a ban on Indica white rice exports by India', the United Nations’ Food and Agricultural Organisation (FAO) has said in a report. This had led to rice prices reaching a 15-year nominal high.
'Uncertainty about the ban’s duration and concerns over export restrictions caused supply-chain actors to hold-on to stocks, re-negotiate contracts or stop making price offers, thereby limiting most trade to small volumes and previously concluded sales,' the report continued.
In July, India had banned the export of non-basmati rice to try and curb rising prices. The consumer affairs and food ministry said at the time that the move would 'ensure adequate availability' and 'allay the rise in prices in the domestic market'.
Non-basmati white rice constitutes about 25% of the total rice exported from the country. 'The prohibition on export of non-basmati white rice will lead to lowering of prices for the consumers in the country,' the ministry said.
India has since announced exemptions for Bhutan, Mauritius and Singapore.
Reports have said that over 40 nations depend on India for over half of their rice imports, and certain African and South Asian countries procure over 80% of their rice imports from India.
thewire.in
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