This decision of the Government of India cannot be called wrong. At the most it can be said that if the method of assessment and planning of the government had been better, the world would not have felt this decision as a surprise.
India imposed a ban on the export of rice because there was a apprehension of its shortage inside the country. Therefore, this decision of the Government of India cannot be called wrong. At the most it can be said that if the method of assessment and planning of the government had been better, the world would not have felt this decision as a surprise. Similarly, India’s rice traders and foreign importers could also do better planning. However, it is now reported that rice trade in Asia has almost come to a standstill due to India’s ban, as Indian traders are no longer signing new agreements. As a result, buyers are looking for alternatives like Vietnam, Thailand and Myanmar. But the traders of these countries have taken advantage of the opportunity and increased the prices. India, the world’s largest rice exporter, had announced a ban on the export of broken rice only last week. Along with this, 20 percent tax was imposed on export tax on many other varieties. The decision has been taken to check the rising prices of rice in the local markets due to below-average monsoon rains.
India exports rice to more than 150 countries of the world and any reduction in exports from its side directly affects the prices in those countries. The world is already facing a huge increase in the prices of food items. Now this problem of the world can take a serious form due to the shortage of rice. Rice prices in Asia have increased by up to five percent since India’s decision. All the experts say that the prices will increase further now. Significantly, rice is the staple food of three billion people of the world. India’s rice exports reached a record 21.15 million tonnes in 2021, which is more than the total exports of the rest of the world’s four largest exporters Thailand, Vietnam, Pakistan and the US.