Ever since a ban on the export of non-basmati white rice by India, the cost of rice has seen a massive surge in recent months, marking its highest point in nearly 12 years according to the ratings by the Food and Agriculture Organisation (FAO).The FAO, a part of the United Nations, stated that the FAO All Rice Price Index climbed by 2.8% in July compared to the previous month, reaching an average of 129.7 points. This figure is almost 20% higher than the corresponding period last year, representing the highest level since September 2011, as per a report by the news agency Reuters.Many factors have contributed to the rise in rice prices, with robust demand for rice being a notable factor. Indias recent decision to restrict exports has led to a reduction in the global rice supply. Furthermore, unpredictable weather conditions in certain rice-producing nations have resulted in diminished yields, further tightening the supply.Indias rice export ban could lead to food price volatility, retaliatory measures: IMF chiefOnly July 20, India – responsible for 40% of the worlds rice exports – imposed a suspension on its largest rice export category last month in an effort to stabilise domestic prices, which had surged to multi-year highs in recent weeks.“In the current environment, these types of restrictions are likely to exacerbate volatility on food prices in the rest of the world, and they can also lead to retaliatory measures. We would encourage the removal of these types of export restrictions because they can be harmful globally,” Pierre-Olivier Gourinchas, Chief Economist of the IMF, said during a press conference.The increasing cost of rice is projected to have a significant impact on food security across numerous countries. Rice constitutes a staple food for millions of people worldwide, and the elevated prices could render it challenging for many to afford it.According to the Reuters report, key rice exporters include India, Thailand, Vietnam, Cambodia, and Pakistan. On the other hand, China, the Philippines, Benin, Senegal, Nigeria, and Malaysia feature among the top rice-importing nations.In the 2022-23 fiscal year, Indias total exports of non-basmati white rice reached USD 4.2 million, as opposed to USD 2.62 million in the previous year. The primary recipients of Indias non-basmati white rice exports include the United States, Thailand, Italy, Spain, and Sri Lanka.
