IMF appeals to lift ban on rice exports

There is fear that India's decision may increase inflation in the world

New Delhi: The International Monetary Fund has said it will discuss with India to lift the ban on exports of certain grades of rice, as the move could impact global inflation. The Indian government on July 20 banned exports of non-basmati white rice to boost domestic supply and control retail prices during the upcoming festive season. The food ministry said in a statement that there would be no change in the export policy for non-basmati rice and basmati rice.

Both varieties account for a large share of the total exports. Non-basmati white rice accounts for about 25 percent of the total rice exported from the country.

The International Monetary Fund's chief economist said that in the current scenario, such sanctions are likely to destabilize food prices in the rest of the world and may lead to retaliatory action by other countries. So we will certainly discuss with India to remove such export restrictions as it can have a detrimental effect on the world.

Non-basmati white rice from India is mainly exported to Thailand, Italy, Spain, Sri Lanka and USA.

Meanwhile, after India banned the export of non-basmati rice, rice importing countries have started contacting the governments of rice exporting countries directly to meet their needs. On the other hand, due to the ban, the price of rice in the domestic market is seeing a sharp decline. After India's ban, there has been a food safety concern in addition to a global supply crunch. From Africa to Asian countries, the situation has worsened in the coming days.

Due to India's ban on rice exports, the supply of rice in the world market is about to decrease by twenty percent, due to which the importing countries are preparing to approach the governments of the exporting countries directly. Local traders said that the governments of Indonesia and the Philippines are preparing to approach the Indian government to enter into an export agreement to meet their rice demand.

Meanwhile, after India's ban on rice exports, domestic rice prices have dropped by Rs 4,000 per tonne, market sources said. Sources of The Rice Exporters Association of India said that the price of white rice, which was quoted at Rs 3,200 per tonne before the ban, is now down to Rs 28,000.

Area under rice cultivation is expected to remain normal in Kharif season

According to the National Rice Research Institute at the Indian Council of Agricultural Research, sowing of paddy in the current kharif season will be normal. After this assumption of the institute, the concern of rising rice prices in the country has eased. Slow pace of sowing and low availability at the start of the current kharif season have pushed up rice prices. Besides, reports of crop damage due to excessive rainfall and flood conditions in some states have also raised policymakers' concerns.