India’s ban on the export of non-basmati white rice has led to long lines at stores all over the US, with panic-stricken people eager to stock up on their staple.
The Food and Consumer Affairs Ministry on July 20 banned the export of non-basmati white rice, with immediate effect, to stabilise the volatile retail prices in the country. Rice production has taken a hit owing to vagaries of weather such as heavy monsoon rains in rice-producing States in the north and deficit rainfall in other parts of the country.
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Parboiled rice, however, has been exempted from the ban. The government said that the export ban was “to ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market”.
According to reports in the US, rice bags of all varieties flew off the shelves as anxious Asian communities, for whom rice is a staple, thronged the stores. Unable to meet the panic demand, the owner of a store stocking Indian products in Mason town in Ohio State enforced rationing by asking customers to restrict their purchase to one 20-pound bag (9.07 kg) of ordinary white rice per head, costing $24.
The outlets of major brands also saw a scramble for the same. All varieties of rice including basmati were sold out in a few hours on July 21. A leading seller of Indian rice at Mason said that he would sell as long as stocks lasted, which he said would not be more than a day. Meanwhile, in States such as Texas, which has a large Asian population, prices have reportedly been hiked. A buyer in Texas said that he bought a 20-pound bag of white rice at $34.
US prices of rice, of late, have risen by around 11 per cent. A long-time resident of Indian origin said that they had faced a similar situation some three years ago when India restricted the export of wheat flour.
According to reports in India, shipments waiting at ports and cleared for exports would not be stalled.
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Industry experts claimed that the ban was expected to inflate the prices of food products globally. China, a major rice producer, has also suffered owing to inclement weather. The war in Ukraine has already significantly impacted global food prices. Analysts, however, were optimistic that the worldwide rice scarcity would ease by 2024.
The major markets for Indian rice are African countries. China, India, Thailand, Vietnam, and Pakistan are the leading producers and major global suppliers of rice.
