India is likely to restrict some rice exports as domestic supplies are threatened, a move that could further disrupt global food markets and exacerbate hunger, according to people familiar with the matter. have a nature.
Rising local prices have prompted the government to discuss curbing exports of broken rice, which accounts for nearly 20 percent of India’s overseas shipments, said the people, who asked not to be identified because the information is private. there is Talks are at an advanced stage and a decision could be announced soon, the people said.
A spokeswoman for the Food and Commerce Department declined to comment. The Finance Ministry did not immediately respond to a request for comment.
India accounts for 40% of the world’s rice trade, and restricting exports would further hurt countries grappling with a cost of living crisis and worsening hunger. About 90% of the world’s rice is grown and consumed in Asia, which will affect the billions of people who depend on it as a staple food.
Unlike wheat and corn prices, which soared after Russia’s invasion of Ukraine, rice is held in check by abundant reserves, avoiding a greater food crisis. In 2008, India and Vietnam embarked on exports and panic over supplies prompted prices to exceed $1,000 a ton, more than double what he is now.
In India, broken rice is mainly used for livestock feed and ethanol production. Increased export demand has caused prices to skyrocket this year. Top buyers include China, which is mainly used as livestock feed, and African countries, which import grains for human consumption.
India has already restricted exports of wheat and sugar, shocking global markets as it showed an escalation of food protectionism that saw countries block the flow of their own supplies to the world. This has helped propel global prices for kitchen essentials to new records, although they have fallen recently as global crop prospects have improved.
Lack of rainfall in some areas has resulted in a potential suppression of rice, as plantings have shrunk by 8% this season. The major growth states of Uttar Pradesh and Bihar have about 40% fewer monsoon showers than average. Overall, the country has exceeded normal rainfall by 9% during this period.