India To Halt Or Curb Rice Exports: 'Devastating Impact' Expected With 40% Of Worlds Supply Of Rice

“Devastating impact” warning as India moves toward halting RICE exports, leading to global mass starvation

 Lance D Johnson 

Economists are sounding the alarm after India put new restrictions on wheat and sugar exports. Radhika Piplani, an economist from Yes Bank Ltd. warns that rice may be next, as India begins to protect its local food supply.

“The government has already imposed restrictions on wheat exports; it’s a matter of time when restrictions on rice exports might be considered,” said Radhika Piplani.

If India’s rice exports are restricted, up to 40 percent of the world’s supply of rice would be at stake. This is according to the USDA Foreign Agricultural Service. Analysts warn that the move would have a “devastating impact” on global trade, leading to even greater price hikes and increasing starvation around the world.

India may block rice exports just to maintain food security across the Nation

An inter-ministerial committee that tracks prices of essential commodities discussed the rice reserves in India. They concluded it is not necessary to make export restrictions to protect the rice supply. Indeed, India already has a large inventory of rice, but that’s not the issue at hand. India may restrict its rice exports so the country can utilize its rice reserves to compensate for wheat losses and safeguard against inflation and food security concerns.

“Restricting exports of rice is a possibility,” said Poornima Varma, assistant professor at the Centre for Management in Agriculture at the Indian Institute of Management, Ahmedabad. “The government may feel there’s a need to substitute wheat with rice to curb domestic inflation and safeguard food security,” she said.

Suvodeep Rakshit, senior economist at Kotak Institutional Equities, sees the possibility for rice export restrictions in the coming months. “Rice is about to be sown and output depends on the weather. If the monsoon is erratic and rice prices jump, it’s likely that exports will be curbed,” he said.