IMFs Chief Economist and Director, Pierre-Olivier Gourinchas, has said restrictions imposed by India on exports of certain varieties of rice are likely to worsen volatility in food prices in the rest of the world.While addressing the World Economic Outlook conference, he said, “And they (the ban on rice exports) can also lead to retaliatory measures. So, they are certainly something that we would encourage the removal of these types of export restrictions because they can be harmful globally.”He also said that restrictions on rice would affect global inflation after India restricted the export of rice of certain categories.It is to be noted here that the decision by India was followed by Russias announcement of pulling out from the United Nations and Turkey broke the Black Sea grain deal. Along with this, sources also claim that the move has been taken to keep a check on prices ahead of the upcoming festive season, which constitutes almost 25% of the total rice export of the country.“And there are estimates of about 33 million tons of grain that were shipped from Ukraine to the rest of the world. And it helped keep price pressures on food and grain prices lower,” Gourinchas said.“…now that this grain deal has been suspended, the same mechanics work in reverse, and its likely to put upward pressure on food prices,” he added.Notably, the central government amended the rice export norms putting the non-basmati white rice in the prohibited category last Thursday. However, export will be allowed based on permission granted by the government to other countries to meet their food security needs and based on the request of their government.The export policy relating to non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other) was revised from free to prohibited and it came into force immediately.India said the ban, enforced on Thursday evening, would “ensure adequate availability of non-basmati white rice in the Indian market” and lead to lowering of prices for domestic consumers.
