An IMF warning of worldwide food inflation, fears of shortages and widespread panic buying have been the consequences of an export ban on non-Basmati white rice, issued by India last Thursday. The country is the biggest exporter of rice in the world, accounting for around 40 percent of worldwide exports, almost half of which is made up of the non-Basmati white rice variety. Other big exporters, according to USDA data, are Thailand, Vietnam, Pakistan and the United States.
According to Reuters, African countries as well as Bangladesh and Nepal are large buyers of Indian non-Basmati rice, while the country's main customers in the Middle East and Central Asia typically buy Basmati exports. The former countries might now seriously struggle to meet their import needs and world market prices might also be seriously affected.
According to the Indian government, the move became necessary after an irregular monsoon in India has diminished harvest prospects and caused the price of rice to increase domestically. After weeks of too little rain, a heavy monsoon onset has damaged crops.
