India bans rice exports, UAE follows suit: Possible impact on world food market

India bans rice exports, UAE follows suit: Possible impact on world food market

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India recently imposed a ban on lower-grade rice exports including exports of de-oiled rice bran until November 30. In a statement, the country’s Ministry of Consumer Affairs said that it has amended the export policy “in order to ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market.” It said the ban would take effect immediately.

The United Arab Emirates soon announced its own ban on rice exports and re-exports for four months, including rice of Indian origin.

These announcements come weeks after Russia pulled out of the Black Sea Grain Initiative which allowed Ukrainian wheat, sunflower, and corn to be shipped despite the ongoing conflict.

The Indian ban on rice and its effect on the world food market is compounded by the drought conditions being faced by Thailand, the world’s second-largest rice exporter. The outlook has prompted Thai authorities to ask farmers to restrict rice planting to a single crop to conserve water.

Implications of India’s rice ban

Since India’s ban took effect on July 20, the world food market has been in turmoil, raising fears of global food inflation. Rice prices in Asia jumped to the highest