Rice export ban by india price rise in world crisis of food increased

New Delhi : India had announced a ban on the export of rice last week, the effect of which is now being seen in the whole world and especially in the Asian market. The price of rice is increasing rapidly in the market. Within 4 days of India's decision, rice prices have increased by 4 to 5 percent in Asian markets. This has almost brought the rice trade to Asia to a standstill as Indian traders are no longer signing new agreements. As a result, buyers are looking for alternatives like Vietnam, Thailand and Myanmar. But the traders of these countries have increased the prices due to seizing the opportunity. India, the world's largest rice exporter, had announced a ban on the export of broken rice only last week.

Along with this, export tax on many other varieties was imposed up to 20 percent. The decision has been taken to check the rising prices of rice in the local markets due to below-average monsoon rains. Rainfall has decreased in many areas this year. Due to this the planting of paddy has reduced and has also been delayed as compared to the previous years. In such a situation, the Government of India has taken this decision to avoid the crisis of rice prices in the domestic market. India exports rice to more than 150 countries of the world and any reduction in exports from its side directly affects the prices in those countries.

This can be a big problem for a world already facing a huge increase in the prices of food items. Many regions of Europe and America are reeling from historic droughts and the impact of the Ukraine war is also adding to the pressure on various economies. There has been an imbalance in the demand and supply of food grains since the Ukrainian war. Earlier there was a problem with wheat and sugar and there was a record increase in the prices of both the items. Recently India imposed disease on the export of wheat and also controlled the export of sugar. Now even with the ban on rice, the crisis may deepen.

Rice prices in Asia have increased by up to five percent since India's decision. Experts say that the prices will increase further now. Himanshu Agarwal, director of Satyam Balaji, India's largest rice exporter, says, "Rice trade across Asia has come to a standstill. Traders don't want to make promises in a hurry. India accounts for 40 percent of the world's total rice exports. So no one is sure how much the price will increase in the coming time. Rice is the staple food of the world's three billion people. In 2007 too, India imposed a ban on the export of rice. Then its price had reached a record level of one thousand dollars per ton.

stop loading at ports

After the decision of the Government of India, the work of loading rice in ships at the major ports of the country has stopped and about one million tonnes of rice is lying there. The buyers are refusing to pay the new 20 per cent tax imposed by the government. This is because agreements have been made on the price of this rice long ago and the new tax imposed by the government was not pre-decided. Aggarwal says that India's exports may fall by 25 per cent in the coming months due to the increased tax. He says that the government should at least give relief for the agreements that have been signed before today and rice is being loaded at the ports.

These countries are benefiting from India's ban

Traders from India's rival countries Thailand, Vietnam and Myanmar are taking advantage of banning the export of rice from India. Buyers are turning to these countries to ensure supply of rice. But the traders of these countries have increased the price of broken rice by up to five per cent. Dealers say that in the last four days, that is, after the decision to ban India's exports, the prices have increased by $ 20, or about one and a half thousand rupees per ton.