India clamps down on rice exports as global food worries grow

Nikkei Asia ^

[FarCenter]

India has restricted exports of some varieties of rice, effective Friday, as the world's largest supplier tries to ensure domestic provisions amid global pressure on the food market.

The government said it has prohibited exports of broken rice -- fragmented grains that are generally cheaper and more accessible to the poor. It has also imposed a 20% tax on export sales of some varieties, including husked brown rice and semi-milled or wholly milled white rice.

The move comes amid concerns over lower rice production during the ongoing crop season as uneven monsoon rains have left some areas parched. Outside India, the decision is likely to fuel worries over food inflation, already being exacerbated by Russia's invasion of Ukraine, a key wheat supplier.

Addressing reporters on Friday, Sudhanshu Pandey, India's food secretary, said prices of rice have been trending higher in recent months. He said broken rice, which is also used in animal feed, had hit 22 rupees per kilogram -- up from 16 rupees in January. Total rice sowing this season is down by 3.8 million hectares compared with last year, he said.

While explaining the reasoning for the curbs, Pandey was also quick to downplay supply risks, saying the worst-case scenario was a "not very significant" production loss of 10 million to 12 million tonnes. "Sowing has just ended and if yield is good in some areas, this could get compensated also," he added.

...

Overall, India is the world's second-largest rice producer, after China, accounting for 40% of the global rice trade. It exports the grain to over 150 countries, helping to feed Asia and Africa, from Nepal and Vietnam to Benin and Djibouti.

[chajin]

Well, that’s going against the grain

[9YearLurker]

Makes sense.

[Tilted Irish Kilt]

At the end of last month, India already embargoed all of its' domestic cooking oils.
The situation in Ukraine has made all the grains and rice dependent countries jittery

[blam]

I can remember when either the Indians or Chinese were starving all the time.

For real....hundreds of thousands dying each year from starvation.

I remember once when the US sent some seed corn to India and things were so desperate that when it arrived they promptly ate the seed corn. Many died because poison had already been applied to seed corn.