Global rice prices hit 12-year high as India restricts export

Price of rice surged to a 12-year high globally after the Indian government imposed restrictions on sale of all non-basmati varieties overseas which accounted for 80 percent of total rice shipments. India, on July 20, banned the export of non-white basmati rice and imposed a 20 percent export duty on parboiled rice on August 25.

India’s share in global rice trade is 40 percent out of which it shipped 4 million tons of basmati rice. Basmati rice was exported to Iran, Iraq, Saudi Arab, United Arab Emirates and the US.

In 2022-2023, India exported 45.6 lakh tons of basmati rice for $4.8 billion and 177.9 lakh tons of non-basmati rice for $6.36 billion. India produced  135.54 million tons of rice in 2022-2023 and 129.47 million tons  of rice in 2021-2022.

Other countries too are looking at restrictions on rice export as Myanmar, the fifth-largest rice exporter, is looking to restrict exports and Thailand has advised its farmers to reduce rice cultivation to conserve water.

The Food and Agriculture Organisation’s (FAO) rice index was the highest in July at 129.7 since September 2011.

This article has been republished from The Moneycontrol