Global rice prices surged to a 15-year high in August, mainly due to India’s decision to ban exports of non-basmati rice.
The Food and Agriculture Organization of the United Nations (FAO) said in a report on Friday that the price of rice increased by 9.8% in August, despite the decrease in the prices of other food products around the world.
The FAO said that India’s ban on exports had disrupted global trade and created uncertainty in the market. As a result, vendors at various stages of the supply chain have been stockpiling rice, which has reduced the scope of trade and sales.
India is the world’s largest rice exporter, and its ban on non-basmati rice has had a significant impact on global markets. About 80% of India’s total rice exports are these other types of rice.
The FAO said that more than 40 countries of the world depend on India for more than half of their rice imports. Even some African and South Asian countries source more than 80% of their total rice imports from India.
The FAO warned that the global rice market is likely to remain volatile in the coming months, as the impact of India’s export ban is felt.
The ban is likely to have a significant impact on food security in some countries, particularly those that are heavily reliant on imported rice. The FAO said that it is monitoring the situation closely and will provide updates as needed.
The ban on rice exports is a major policy shift for India, which has traditionally been a major player in the global rice trade. The move is likely to have a significant impact on global markets and food security.
