India Halts Rice Exports, Global Rice Supplies Could Be Disrupted

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Adi Ahdiat 28/07/2023 11:06 WIB

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India's ban on rice exports starting July 2023 could disrupt global supplies. This is because India is the world's largest exporter of rice, including to Indonesia.

Top 10 Largest Rice Exporting Countries in the World (2022/2023)

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India Halts Rice Exports, Global Rice Supplies Could Be Disrupted

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Top 10 Largest Rice Exporting Countries in the World (2022/2023)

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The Indian government banned the export of non-basmati white rice starting July 20, 2023. This ban aims to curb rising domestic rice prices.

"Retail rice prices (in India) have increased by 11.5% in the last year and by 3% in the last month," stated the Indian Ministry of Consumer Affairs, Food and Public Distribution in a press release on Thursday, July 20, 2023.

"Non-basmati white rice accounts for about 25% of India's total rice exports. The export ban on this type of rice will contribute to lower prices for consumers in India," it continued.

While beneficial for India, the International Food Policy Research Institute (IFPRI) believes this policy could cause global instability.

"For the past 15 years, India has been among the world's largest rice exporters, even contributing 40% of total global rice exports in 2022/2023. Any action taken by India can significantly impact the market," said the IFPRI research team on its official website on Wednesday, July 25, 2023.

Citing data from the United States Department of Agriculture (USDA), in the 2022/2023 trading year, India exported 22.5 million tons of rice globally, making it the world's number one exporter.

Other major exporting countries include Thailand, Vietnam, Pakistan, Myanmar, Cambodia, China, Brazil, Uruguay, and Paraguay. However, their rice export capacity is significantly smaller than India's, as shown in the chart above.

Considering India's vital role, IFPRI predicts that the export ban from the Bollywood nation could disrupt rice supplies in several countries.

"If India still allows the sale of non-basmati rice to its neighboring countries, or if the ban is only temporary, the impact on the market may be limited. However, if the export ban policy is stricter, it could significantly impact countries currently dependent on Indian rice," said the IFPRI research team.

"India's decision to ban non-basmati rice exports creates new vulnerabilities in the commodity market and threatens already weak global food security," it continued.

This could also potentially impact Indonesia. According to data from the Central Statistics Agency (BPS), in 2022 India was the largest supplier of imported rice to Indonesia.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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India Halts Rice Exports, Global Rice Supplies Could Be Disrupted

India Halts Rice Exports, Global Rice Supplies Could Be Disrupted

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India Halts Rice Exports, Global Rice Supplies Could Be Disrupted

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Prevalence of Inadequate Food Consumption in Cilacap Decreased by 1.39% in the Last Year

Pangandaran Residents' Food Consumption Inadequacy Rate Decreased by 5.22% in 2024

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