India’s Export Bans Cause Crisis in Global Rice Markets
Published on: January 22, 2024.
Filed under:
Global Rice Markets in Crisis Due to India’s Export Bans
The global rice market is currently facing a severe shortage, the most severe in twenty years, and it is causing a crisis around the world. This crisis is primarily triggered by India’s export bans, which have led to a 12-year high in rice prices, with increases ranging from 15% to 20%. The impact of this crisis is particularly felt in developing nations in Africa and Southeast Asia that heavily depend on rice as a staple grain.
India, accounting for 40% of the world’s rice exports, imposed an export ban on broken rice in September 2022 and introduced a 20% export duty on certain rice varieties. In July 2023, the ban was extended to plain, white, long-grain rice. These export restrictions were implemented by India to address its struggle with food insecurity and protect its domestic food supply. However, this has created a global dilemma, affecting both global food security and trade relationships. Developing countries that heavily rely on India’s rice exports are experiencing a shortage, leading to increased food costs and potential socio-economic instability.
The impact of India’s policies is not limited to developing nations. U.S. rice farmers are also facing consequences due to skewed global prices and rising input costs. To support these farmers and prevent a collapse of the rice farming industry, the U.S. Congress has approved $250 million in supplemental funding. This financial aid aims to safeguard the livelihoods of rice farmers and maintain food security within the country.
Looking ahead, the situation poses the threat of a global rice megacrisis if governments resort to protectionism and close their borders. To prevent such a crisis and ensure food security for billions of people worldwide, a collective and globally coordinated response is essential.
Source: [BNN Breaking](https://bnnbreaking.com)
