Will India no longer make the world laugh with laughter?
To contain domestic inflation, India could ban almost all rice exports. The move could have serious consequences on global markets: New Delhi alone is worth 40 percent of the trade in this grain
India is planning to ban the export of almost all varieties of rice. If this were the case, the consequences on international markets would be profound: New Delhi is in fact the world's largest exporter of cereals (with a 40 percent share), whose prices are already rising due to fears about the impact of El Niño on crops.
WHY INDIA WANTS TO BLOCK RICE EXPORTS
According to Bloomberg , which revealed the news, the Indian government could ban exports of all rice varieties, except basmati, to keep the domestic market well supplied and avoid rising prices and inflation. If the plan is implemented, the ban will apply to around 80 percent of India's rice exports. Domestic grain prices are likely to fall, while international prices may rise.
There was a sharp rise in consumer price inflation in India in June linked to high food prices. Bloomberg predicts that inflation will rise further, driven by the rise in tomato prices, widely used in the Indian diet.
THE CONSUMPTION OF RICE AND THE ROLE OF EL NIÑO
Rice is a crucial food for humanity: it is the basis of the diet of almost half of the world's population, with Asia consuming around 90 percent of total supplies. Rice prices have already risen to a two-year high due to fears that the return of El Niño – an atmospheric phenomenon that occurs in the Pacific Ocean and which causes an increase in the global average temperature – could damage crops.
INDIA'S BACKGROUND
Last year, in response to the agricultural price crisis caused by the Russian invasion of Ukraine, India banned the export of broken rice (much consumed in Asia and also used for the production of breakfast cereals) and imposed tariffs of 20 percent on the trade of white and brown rice.
IMPORTING COUNTRIES REFILL THE STOCKS
India exports rice to hundreds of countries. Among its main buyers are China, Senegal, Ivory Coast, Benin and Togo.
China and other big rice importers like Indonesia and the Philippines have been stockpiling rice for months in anticipation of droughts fueled by El Niño, which the World Meteorological Organization says swept across the Pacific for the first time in seven years .
Top rice exporting nations include Thailand (15.3 percent) and Vietnam (13.5 percent).
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This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/india-riso-blocco-esportazioni/ on Thu, 13 Jul 2023 11:06:44 +0000.