Trouble! India Also Blocks Rice Exports

<p>&nbsp;The world was shocked by the news of India banning the export of its non-basmati white rice effective Thursday.</p><p><br /></p><p>The Ministry of Consumer Affairs said it aims to help ensure adequate availability of non-basmati white rice in India and moderate price increases in the domestic market.</p><p><br /></p><p>India is the world's leading exporter of rice, accounting for over 40% of global rice trade and the second largest producer after China.</p><p><br /></p><p>The move is seen to add pressure to already rising prices, thus re-warming global inflation.</p><p><br /></p><p>Among the countries that will be worst affected by this restriction are definitely Bangladesh and Nepal which are the main export destinations.</p><p><br /></p><p><br /></p><p>According to the Ministry of Consumer Affairs, non-basmati white rice makes up about 25% of India's rice exports.</p><p><br /></p><p>Analysts see that affected importers may turn to alternative suppliers in the region, such as Thailand and Vietnam.</p><p><br /></p><p>Why is the price of rice increasing?</p><p><br /></p><p>Prices are already hovering at a decade high, partly due to tight supplies as they become alternatives to other major grains affected by the Ukraine-Russia war.</p><p><br /></p><p>Wheat prices surged again this week after Russia pulled out of the Black Sea grain deal, which previously played a role in averting a global food crisis by allowing Ukraine to continue exporting.</p><p><br /></p><p>India is also struggling with high prices of vegetables, fruits and grains, where tomato prices have soared more than 300% in recent weeks due to bad weather.</p>