The global rice market is facing a precarious situation as India recently imposed a ban on non-Basmati rice exports, accounting for 40 percent of its annual 17.5 million tonnes of non-Basmati rice shipments.
Since the ban took effect on July 20, the rice market has been in turmoil, raising fears of global food inflation. This concern comes on the heels of Russia’s withdrawal from the Black Sea Grain Initiative, which ensured the supply of Ukraine wheat, sunflower, and corn to nations dependent on Kyiv’s provisions. With wheat prices already rising due to the Black Sea Grain Initiative’s disruption, experts worry that the rice export ban by India may exacerbate the situation, leading to potential food price instability worldwide.
What led to the export ban of non-basmati rice products? and what is the way forward?
Pushan Sharma, Director - Research, CRISIL Market Intelligence and Analytics helps decode the global rice situation and more.