India Pushes World Towards Another Rice Crisis
Published on: October 30, 2023.
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India’s Ban on Rice Exports Affects Global Market and Food Security
India’s decision to ban or tax exports of rice and wheat has caused a significant impact on the global rice market. As the largest exporter of rice, accounting for 40% of global rice trade, India’s actions have led to higher rice prices worldwide. This, combined with other factors such as Russia’s invasion of Ukraine and the El Niño weather phenomenon, has caused grain supplies to diminish in the world’s poorest countries.
The United Nations’ Food and Agriculture Organization reports that rice prices were 28% higher in September compared to the previous year. This increase in prices has affected countries heavily reliant on rice imports, particularly those in sub-Saharan Africa, such as Kenya, Ivory Coast, Cameroon, Guinea, Madagascar, Benin, Angola, Mozambique, and Togo. Inflation rates have surged as a result, with Nigeria experiencing inflation over 25% and Ghana over 40%.
Implementing export restrictions, however, is not a solution to combat inflation and protect domestic consumers. Instead, it leads to insecurity and instability. During the previous foodgrain crisis in 2007-08, 14 African countries witnessed food riots, and poverty rates increased by 3% to 5% in major food-importing nations. These setbacks in development persisted for seven years, according to World Bank economists. The Arab Spring that followed was also partly fueled by persistently high food prices.
India is not the only country implementing bans and restrictions on food exports. Other major exporters like Vietnam have taken similar measures. However, given India’s dominance in the rice market, it holds a larger responsibility. Yet, the Indian government has prioritized control over transparent support for domestic consumers in fear of voter backlash.
Export bans adversely affect Indian farmers, as they miss out on opportunities to sell their produce when prices are high. While India defends its agricultural subsidies at the World Trade Organization as necessary protection for subsistence farmers, these concerns seem to fade away when food prices rise and anger consumers in urban areas.
India needs to step up and fulfill its promise of being a different kind of great power. It should prioritize open and resilient supply chains for essential commodities like food and fuel to ensure the welfare of the world’s poorest. The current export restrictions do not align with India’s aspirations and commitments.
In conclusion, the ban on rice exports from India has had far-reaching consequences for the global market and food security. It is essential for India to reevaluate its policies and work towards a more responsible and sustainable approach to trade.
[Source](https://www.washingtonpost.com/opinions/2023/10/27/indias-export-bans-hurt-worlds-poor-push-prices-even-higher/){:rel=”nofollow”}