India Considers Banning Rice Exports







 India has started thinking about imposing a ban on the export of rice to the world market due to the fear of price inflation.  The world's largest rice exporter is considering banning the export of all types of rice except Basmati, according to a Reuters report on Thursday.





As a result of this move by the Indian government, the price of rice, which has already skyrocketed in the global market, may increase further.  People involved in the matter say the government is discussing a plan to ban the export of all types of rice other than Basmati.  This is because of the price increase in the domestic market and the authorities want to avoid the risk of inflation. 






 If this decision of India is implemented, about 80 percent of the country's rice exports will be blocked.  Such a move would help bring down prices in the domestic market, but risk a further jump in global rice prices.


 Rice is the staple food of nearly half of the world's population.  Asia consumes about 90 percent of the world's rice supply.  The price of rice in the world market has already reached the highest level in the last two years due to the fear that the return of hostile weather El Nino will disrupt rice production.  About 40 percent of the world's rice trade goes through India.  The country's government is trying to curb the export of certain varieties of rice.

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