Govt bans non-basmati rice exports to check price spike

Move comes after Russia risked fuelling global food inflation by exiting Ukrainian grain deal

- Puja Das & Ravi Dutta Mishra

Days after Russia pulled out of the Black Sea grain deal, risking further global food inflation, the government on Thursday banned the export of non-basmati white rice in a bid to check rising prices.

Mint on 18 July reported large companies, traders and exporters are rushing to secure letters of credit (LCs) for future shipments, fearing that rising prices may trigger export curbs on some varieties of non-basmati rice.

“Export policy of non-basmati white rice (semi-milled or wholly milled rice, whether polished or glazed)...is amended from free to prohibited," the DGFT said in a notification.

The International Monetary Fund had warned that Russia’s exit from a deal allowing Ukrainian grain shipments via the Black Sea threatens to increase global food insecurity and could drive food prices higher, especially in low-income countries.