Industry news
Industry news
Why India will restrict rice exports by sea
Aug 08,2022


Countries around the world are grappling with soaring food prices and rampant inflation at a time when India's rice production is under threat.


In stark contrast to previous surges in wheat and corn prices following the Russian-Ukrainian conflict, rice prices have been relatively stable due to ample production and stocks, helping to avert a bigger food crisis.


Now, many traders are worried that a drop in India's rice production could cause the country to restrict exports. This will have profound implications for the billions of people around the world who rely on rice as their staple food.


India supplies rice to more than 100 countries around the world, with Bangladesh, China, Nepal and some Middle Eastern countries being its biggest customers. The country, which accounts for 40 percent of global rice trade, has previously restricted exports of wheat and sugar to ensure domestic food security and control food prices.


The price of Indian rice has recently risen markedly due to concerns over production. Rice exporters said prices of some rice varieties have surged by more than 10% in the past two weeks in key growing states such as West Bengal, Odisha and Chhattisgarh due to insufficient rainfall and increased demand.


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