The rice export has been allegedly stopped with effect from Thursday following the notice from the Government of India. The sudden decision has shaken the world, as India controls 40% of world rice.
The ban only applies to non-basmati rice, leaving premium quality basmati rice aside, which is still completely open for export. The decision will directly affect global inflation in food items, as not only India, Russia has terminated their key grain deal.
After digging deep, it was found that India has recently encountered a climatic disturbance in the areas that are said to be the country’s food bowl. Due to the increasing population and hinged crop production, the country must stack it up to meet its domestic needs. Moreover, the delay in the monsoon has also affected the production of non-basmati rice.
What Underlying Motives Led to the Ban?
When India banned rice exports, the world was somewhat startled. The following are the factors that led the authorities to make this choice:
- One of the primary reasons for the ban on rice exports is India’s challenge over personal food safety. Ensuring enough food reserves in the United States is extremely important due to the large population there.
- The government chose to prevent any rice shortages in domestic markets, particularly when the weather and financial uncertainties are unpredictable.
- The requirement to reduce inflationary pressures within the nation is a crucial additional factor that contributed to the ban on rice export.
- The Indian government set export restrictions to stabilize rice prices domestically and prevent excessive speculation and rate increases that might negatively impact the average consumer’s purchasing power.
- The government sought to protect the livelihood of farmers by ensuring a stable and robust demand within the domestic market. This measure aimed to safeguard their incomes and prevent any adverse impact on their financial stability.
- The decision to halt rice exports also ties into the larger vision of promoting value addition and processing within the country. India aims to enhance its agricultural sector’s capabilities by focusing on domestic processing and value addition.
Is the Lifting of This Ban Imminent?
The prohibition of rice would affect global inflation and have a consequential effect on the country’s imports. However, imports and other factors are less important than meeting the country’s domestic needs.
Nevertheless, when can the rice ban be anticipated to be lifted? The rice season in India falls twice a year, in summer and winter. The summer rice sowing season has a higher impact than during the period when production touched the highest mark.
However, if the winter rice production is improved and the same continues for the next summer sowing, the chances of lifting the ban will strengthen.
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