India’s Rice Export Restrictions Push Global South Towards Crisis
Published on: October 30, 2023.
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India’s Rice Export Restrictions Impact Global Prices
India’s recent export restrictions on rice and wheat have caused food prices to rise in the world’s poorest countries. The country dominates the global rice market, with its exports accounting for about 40% of the trade. Due to volatile foodgrain prices ahead of an upcoming general election, India has imposed bans and tariffs on various types of rice and wheat exports. This has led to a decrease in grain supplies and an increase in rice prices globally. In fact, rice prices in September were estimated to be 28% higher than the previous year, reaching a 15-year high.
These export restrictions have a significant impact on countries in sub-Saharan Africa, where nine out of the 15 countries importing large amounts of non-basmati rice from India are located. These countries, including Kenya, Ivory Coast, Cameroon, Guinea, Madagascar, Benin, Angola, Mozambique, and Togo, are experiencing increased inflation rates due to rising food prices. Nigeria’s inflation rate has exceeded 25%, and Ghana’s has been over 40% for several months. The restriction of food exports keeps prices high and contributes to instability and insecurity in these countries.
India is not alone in imposing export restrictions; Vietnam, Argentina, Pakistan, Turkey, and China have also implemented similar measures. However, as the dominant player in the rice market, India has a greater responsibility. Unfortunately, the Indian government’s focus on controlling food inflation rather than supporting domestic consumers transparently has led to a series of restrictive measures. This approach not only harms Indian farmers, who are unable to take advantage of high global prices, but also undermines India’s promises to be a responsible global power.
It is crucial for the global community to recognize the importance of keeping supply chains for essential goods, such as food and fuel, open and resilient. Only by doing so can we prevent the world’s poorest from suffering the most. Source.
