Don't get into a cat and mouse chase over rice

India's rice export restrictions led to a price barrier to prevent circumvention. Imports by the state may be costly, but are a better way to tide over shortfalls that can stoke inflation

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Close on the heels of a 20% export tax slapped on parboiled rice, India’s government has set a minimum-price barrier of $1,200 per tonne for the export of basmati rice, the premium kind for which the country has a global reputation. In July, it had halted the export of non-basmati rice, an item of mass consumption, while last year it banned shipments of its broken variety. These measures are aimed at shoring up domestic supplies, so that prices are held in check amid worries of a harvest shortfall, with key rice-growing regions left parched by uneven rains this kharif season. After tomato prices surged to gasp-inducing levels and the impact of inflation on household budgets became a talking point, the government can ill-afford more food price spikes as key state and national elections loom. But the tool-kit chosen by the Centre has its own risky effects. By curtailing rice exports, New Delhi deprives farmers of a chance to take advantage of high international foodgrain prices. While policy must shield consumers, particularly the vulnerable, far