If you want somebody to be a good customer, you have to also be a reliable supplier: said Seth Meyer

To be a good customer, one must also be a reliable supplier, says Seth Meyer, chief economist for the United States Department of Agriculture (USDA). He pointed out that India had imposed restrictions on the export of several agricultural products in the last two years. In 2022 and 2023, India imposed a ban on the export of agricultural products such as wheat, rice and sugar due to the inflation of domestic agricultural products. As India is a major producer of agricultural products. India's ban has led to a sharp rise in global food prices.
Seth Meyer also told reporters that the short-term gain is not worth the long-term reputational damage. He also called US agricultural suppliers reliable. He also said that as the world has come out of crises like the Covid pandemic, geopolitical tensions and El Nino weather, rising production in India could lower commodity prices. He said in such a situation apart from agricultural products, the use of technology, high-efficiency fertilizers and milk production should also increase productivity.
The Government of India imposed a ban on wheat exports in 2022 to curb domestic food supply and price hikes as a result of various crises. And in July the following year, it also banned exports of non-basmati white rice. The ban was followed by a minimum export price of $1,200 per tonne for basmati rice, which was later reduced to $950.
Although India ranks second in rice production in the world, it ranks first in exports. India accounts for 40% of the world's rice exports. As a result, India's ban has had an adverse effect on the world trade market. Rice prices have risen sharply in several countries, including Europe, the US, raising food security concerns. In October 2023, the USDA said global rice prices in August were the highest since 2008 due to India's ban on rice exports.
On 18 October 2023, India's Ministry of Commerce and Industry and the Director General of Foreign Trade (DGFT) revised the sugar export ban for an indefinite period due to the forecast of low production of sugarcane due to unfavourable weather conditions on 31 October.






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