NEW DELHI: India, the top exporter of white rice, has banned the export of the commoedity with immediate effect on Thursday.
The government said it was imposing the ban after retail rice prices climbed 3% in a month as late monsoon rains damaged crops. While a late monsoon caused a major shortfall of rain up to mid-June, heavy rains since have caused significant damage.
India accounts for more than 40% of world rice exports but low inventories mean any cut in shipments will fuel food prices driven up by Russia’s invasion of Ukraine last year and erratic weather.
“In order to ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market, the government of India has amended the export policy,” the government said in a statement that said retail prices were up 11.5% in 12 months.
The move demonstrates the sensitivity of the government of Prime Minister Narendra Modi to food inflation ahead of a general election nearly next year.
His administration has extended a ban on wheat exports after curbing rice shipments in September 2022. It also capped sugar exports this year as cane yields dropped.
