India's rice policy tweak cooled global prices

India's rollback of rice export restrictions offered a timely reprieve to global markets battered by surging food costs, easing supply pressures and restoring confidence in the staple's trade.

- Dhirendra Kumar

According to a report by the World Trade Organization (WTO), the policy shift contributed to a 29% fall in global rice prices in 2025, and helped cool food inflation—particularly in African and Asian countries such as Senegal, Benin and Bangladesh, which depend heavily on Indian rice.

The WTO report, released on 7 November, cited the International Grains Council's Grains and Oilseeds Index (GOI) to note that global food prices overall—including rice and other foods—fell 2% year-on-year in 2025, and 39% from their 2022 peak, led by easing cereal prices following India's reversal.

Experts Mint spoke with corroborated WTO's findings, saying the timing of India's move was crucial, as global grain prices were under pressure from the lingering effects of the Ukraine conflict and high energy costs.

Between 2022 and 2023, New Delhi had imposed several export curbs to rein in inflation—from 20% duties on milled, unmilled and parboiled rice to bans on broken and non-basmati white rice, along with a minimum export price for basmati.

Between September 2024 and March 2025, these measures were gradually eased and then completely lifted.