{"id":6317,"date":"2023-08-04T10:56:25","date_gmt":"2023-08-04T10:56:25","guid":{"rendered":"https:\/\/ricenewstoday.com\/dev\/?p=6317"},"modified":"2023-08-04T10:56:36","modified_gmt":"2023-08-04T10:56:36","slug":"indias-recent-rice-ban-sent-people-into-a-panic-heres-whats-going-on-now","status":"publish","type":"post","link":"https:\/\/ricenewstoday.com\/dev\/indias-recent-rice-ban-sent-people-into-a-panic-heres-whats-going-on-now\/","title":{"rendered":"India\u2019s recent rice ban sent people into a panic. Here\u2019s what\u2019s going on now"},"content":{"rendered":"\n

By Danielle Wiener-Bronner, CNN<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

New York CNN  \u2014  <\/p>\n\n\n\n

Last month, the Indian government\u00a0announced an abrupt ban\u00a0on exporting non-basmati white rice, which includes varieties favored by South Indian communities. The move has raised fears of destabilizing rice supplies in certain parts of the world and\u00a0reportedly sent some US shoppers into panic-buying mode.<\/p>\n\n\n\n

But US rice producers want consumers to know: We\u2019ve got plenty of rice.<\/p>\n\n\n\n

\u201cThere\u2019s enough U.S. rice to go around,\u201d USA Rice Federation, which advocates for members of the US rice industry globally, said in a statement on Monday. \u201cThis is not toilet paper in the Spring of 2020.\u201d<\/p>\n\n\n\n

Much of the rice consumed in the United States is produced domestically, and the US has had a pretty good yield this year, USA Rice noted.<\/p>\n\n\n\n

But for importers and loyal consumers of Indian-grown non-basmati varieties, the ban has been disruptive, including in the United States. Internationally, the ban is causing an upheaval in the market and could especially impact places that rely on Indian rice exports.<\/p>\n\n\n\n

Here\u2019s what\u2019s going on.<\/p>\n\n\n\n

Global impact of India\u2019s ban<\/h2>\n\n\n\n

On July 20, India\u2019s government announced that it\u00a0would stop exporting non-basmati white rice, effective immediately. The move was designed to help lower rice prices and secure availability in India, according to the government\u2019s statement.<\/p>\n\n\n\n

Exports of parboiled rice, which has been partially boiled; and basmati rice, are still allowed.<\/p>\n\n\n\n

The ban, following other restrictions, \u201chas sent the Asian market into a panic,\u201d said Tanner Ehmke, lead economist for grains and oilseeds at CoBank. \u201cNow there\u2019s concern about food inflation, especially across Asia.\u201d India is responsible for about 40% of the global rice trade, he noted. The banned items amount to about 15%.<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

A farmer harvests rice crop in a paddy field on the outskirts of Guwahati, India.<\/p>\n\n\n\n

Anupam Nath\/AP<\/p>\n\n\n\n

The countries most reliant on India\u2019s rice include the Philippines, Malaysia and Vietnam in Southeast Asia and Nigeria, Ivory Coast and Senegal in West Africa, Ehmke said.<\/p>\n\n\n\n

\u201cThe ban is the latest blow to the global rice market,\u201d\u00a0according to a recent blog post\u00a0published by the International Food Policy Research Institute. Reducing the amount of rice India exports \u201c[poses] risks of higher global prices and heightened food insecurity,\u201d according to the post.<\/p>\n\n\n\n

Prices started rising last year because of the\u00a0devastating floods in Pakistan, which tightened global supply, said Joseph Glauber, senior research fellow at the International Food Policy Research Institute and a co-author of the blog post. The ban and the\u00a0El Ni\u00f1o weather pattern could potentially make things worse.<\/p>\n\n\n\n

In South Asia and Southeast Asia, \u201cwe have seen El Ni\u00f1o years where it\u2019s been quite severe in terms of effects on production, and other years where production is normal or even above trend,\u201d Glauber said. \u201cThe question is \u2026 how big [of an] effect will El Ni\u00f1o have.\u201d<\/p>\n\n\n\n

If supply in India remains robust, the Indian government could lift or loosen the ban, he said. \u201cHopefully, it\u2019s more of a precautionary move, and it won\u2019t be long lived.\u201d<\/p>\n\n\n\n

But even then, there could be ramifications in the global market.<\/p>\n\n\n\n

Unless supplies start to deplete, when the ban is lifted \u201cthe world will be flooded with Indian rice. And the market is going to respond accordingly,\u201d said Ehmke. \u201cThere\u2019s always going to be that emotional over-correction.\u201d<\/p>\n\n\n\n

The United States, on the other hand, is in a pretty good spot when it comes to rice.<\/p>\n\n\n\n

US impact<\/h2>\n\n\n\n

Prior to this year,\u00a0US rice farmers struggled with drought\u00a0and some had opted to plant more lucrative crops like soybeans or corn, said Peter Bachmann, vice president of policy and government affairs at USA Rice Federation. But this year was different.<\/p>\n\n\n\n

Prices for soybeans and corn dropped, he noted, making rice attractive once again. And \u201cCalifornia had significant rainfall and snowfall over the winter to provide them with sufficient water for a full production year,\u201d he said. \u201cSo we\u2019re looking to have a really healthy, robust US rice crop.\u201d<\/p>\n\n\n\n

The United States primarily imports specialty and fragrant rice, he said, like arborio rice used to make risotto; jasmine rice; basmati rice and other varieties. US rice makes up the rest. \u201cWe supply about 70-80% of the domestic market,\u201d he said.<\/p>\n\n\n\n

That means that just a small portion of rice consumed in the United States is impacted by the ban. Charles Hart, commodities analyst at BMI, estimates that \u201cunder 2.5% of US rice imports are set to be affected.\u201d<\/p>\n\n\n\n

But in that specialty market, distributors and shoppers are in a tough spot. so long as exports are cut off.<\/p>\n\n\n\n

\u201cWe are completely dependent on non-basmati rice,\u201d said Kiran Kumar Pola, director of Deccan Foods, an importer and distributor of non-basmati Indian rice that operates out of Arizona. \u201cCurrently, we face a significant challenge with 15,000 metric tons of rice orders and contracts.\u201d The situation impacts not only his business, but customers who buy these varieties of rice, he said.<\/p>\n\n\n\n

On its website, Deccan says it carries a variety of non-basmati rice, including Sona Masoori; Kerala Matta; and rice used to make Idli, a rice-based food popular in South India.<\/p>\n\n\n\n

For now, Pola is seeing what products Deccan can develop using parboiled rice, which is not affected by the ban. He hopes there will be exemptions for non-basmati varieties popular with expat communities.<\/p>\n\n\n\n

After news of the ban broke, some grocery stores clocked shoppers stocking up on Indian rice.<\/p>\n\n\n\n

In a\u00a0July 27 Facebook post, Dallas-area Indian grocer India Bazaar encouraged shoppers not to panic or hoard rice.<\/p>\n\n\n\n

\u201cWe at India Bazaar understand the concerns raised in light of the recent ban on Indian Non-Basmati Raw Rice,\u201d the post reads.<\/p>\n\n\n\n

\u201cRest assured, we are actively working on finding alternate solutions to normalize the situation and continue serving you.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

By Danielle Wiener-Bronner, CNN New York CNN  \u2014   Last month, the Indian government\u00a0announced an abrupt ban\u00a0on exporting non-basmati white rice, which includes varieties favored by South Indian communities. The move has raised fears of destabilizing rice supplies in certain parts of the world and\u00a0reportedly sent some US shoppers into panic-buying mode. But US rice producers want consumers […]<\/p>\n","protected":false},"author":1,"featured_media":6319,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[176],"tags":[215,46,167,160],"class_list":["post-6317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-basmati-rice","tag-asian-rice","tag-indian-rice","tag-rice-export"],"acf":{"enable_premium_overlay":false},"yoast_head":"\nIndia\u2019s recent rice ban sent people into a panic. 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