India's restriction on rice exports will worry many nations: reporttext_fields
Mumbai: Following concerns of lower rice production, India banned exports of broken rice and raised a 20% duty on exports of various grades of rice on Thursday, according to Reuters.
Poor rainfall in many rice producing states including West Bengal, Bihar and Uttar Pradesh has given rise to concerns about India's rice production as the country already banned or restricted wheat and sugar exports earlier this year.
Any reduction in India's shipments of rice could leave billions around the world struggling for their meals, because India exports rice to more than 150 countries.
Price of rice would bump up in international market, as India's new duty on rice might force buyers to turn to Thailand and Vietnam for rice which will put more pressure on both exporters.
Already food grain supplies have been derailed by Russa-Ukraine crisis just as drought and heat-waves have added to poor rice production.
New Delhi also banned exports of 100% broken rice, which a few poor African countries import for human consumption, though that variety is mainly used for feed purposes, Reuters said.
India's restriction rice exports will worry many nations: reportBuyers, according to him, will turn to Thailand and Vietnam, making Indian rice uncompetitive.
The new duty that will come into effect from September 9 spares parboiled and basmati rice.
India's cheapest supply of rice reportedly shielded African countries like Nigeria, Benin and Cameroon from rallying prices of wheat and corn.
The raised duty on rice will bring down Indian export by 25 per cent in the coming months, according to India's biggest rice exporter Himanshu Agarwal, executive director at Satyam Balajee.