India, the world’s largest rice exporter, is considering an export ban on the crop. This is due to the rising price of rice. “India is no stranger to protectionist measures.”
Over the past two weeks, the price of rice in India has increased by around 20%. ‘A huge increase, especially when you consider that everyone in the country of all classes and castes consumes a lot of rice. This is a major concern for the government, the question of whether its own population can still afford such a solid food product,’ says India correspondent Lisa Dupuy.
“It appears that this price increase is having an effect on international rice prices”
This price increase is due to a combination of factors. For example, the government has partially raised the price itself. “This is because the Indian government works with a minimum support price for agricultural products, almost a kind of agricultural subsidy,” says Dupuy. “It appears that this price increase is having an effect on international rice prices, so rice prices are rising across the world market.”
Those price hikes will be felt here too, Dupuy thinks. Countries bordering India, also major exporters of the product, also raised prices. There are also concerns about the upcoming harvest. “Due to climate change, we are facing problems with weather patterns. There is a strong El Niño this year, which means less rain in the monsoon season. Rice needs a lot of water, so we will probably have reduced production in the next harvest.’
basmati
If the export ban comes, basmati rice, which is widely consumed in the Netherlands, will not be affected. Dupuy: ‘It won’t be affected by an export ban. Most of the export will be exported. But India is no stranger to protectionist measures. It is conceivable, that could happen soon.’
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
