India has imposed a new ban on the export of certain grades of rice, raising the possibility of new food supply disruptions that could be felt around the world. The ban specifically applies to non-basmati white rice exports, and could cut India’s total rice exports by a quarter. The country supplies about 40% of the rice consumed worldwide.
India exports rice to more than 140 countries. Key buyers of India’non basmati rice include: Angola, Cameroon, Djibouti, Guinea, Benin, Kenya Bangladesh, Ivory Coast, and Nepal. Iraq, Iran, and Saudi Arabia mainly buy premium basmati rice from India.
India exported 17.86 million tons of non basmati rice in the year 2022, including 10.3 million tons of non basmati white rice
The new ban is an attempt to slow food inflation in India. Locally, officials say rice is 11% more expensive than last year.
According to the US Department of Agriculture, the US imports more than a quarter of its rice consumption.
Experts worry that a supply cut by India could trigger a market shock that could be more disruptive than the one seen in the grain market during Russia’s invasion of Ukraine.
The global food supplies have been hit by Russia’ war in UK, which has driven up commodity and grain prices around the world.