{"id":9254,"date":"2023-10-18T11:15:29","date_gmt":"2023-10-18T11:15:29","guid":{"rendered":"https:\/\/ricenewstoday.com\/dev\/?p=9254"},"modified":"2023-10-18T11:15:30","modified_gmt":"2023-10-18T11:15:30","slug":"indias-rice-export-restrictions-need-multilateral-solutions","status":"publish","type":"post","link":"https:\/\/ricenewstoday.com\/dev\/indias-rice-export-restrictions-need-multilateral-solutions\/","title":{"rendered":"India\u2019s rice export restrictions need multilateral solutions"},"content":{"rendered":"\n<p>Much criticism has been levelled against India\u2019s July 2023 decision to \u2018ban\u2019 non-basmati rice exports, which previously made up a third of its milled rice exports. Critics have further argued that the move by India, as the world\u2019s largest rice exporter, could damage its claim to\u00a0lead the Global South, falling far from its promises to address global food challenges under its\u00a02023 G20 presidency.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"400\" height=\"256\" src=\"https:\/\/ricenewstoday.com\/dev\/wp-content\/uploads\/2023\/10\/image-105.png\" alt=\"\" class=\"wp-image-9256\" srcset=\"https:\/\/ricenewstoday.com\/dev\/wp-content\/uploads\/2023\/10\/image-105.png 400w, https:\/\/ricenewstoday.com\/dev\/wp-content\/uploads\/2023\/10\/image-105-300x192.png 300w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/figure>\n\n\n\n<p>India\u2019s export bans can also be seen as irresponsible if driven not primarily by domestic food security, but rather by political reasons. Ahead of the March 2024 elections, there is a need to appease India\u2019s urban middle class by reducing mounting food prices.<\/p>\n\n\n\n<p>The Indian government has not yet normalised its rice trade, with the situation worsening by the month. In\u00a02023, New Delhi imposed further constraints on parboiled rice, which accounts for 42 per cent of India\u2019s milled rice exports. Rice prices have since spiralled to levels similar to the\u00a02007\u201308 global food price crisis. As a potential prompt for yet more countries to join the bandwagon,\u00a0Myanmar\u00a0has also banned rice exports since August 2023.<\/p>\n\n\n\n<p>A small concession came in late August 2023 when the Indian government\u00a0announced\u00a0it would allow for exports to countries facing significant food security challenges such as Bhutan, Mauritius and Singapore, though this has done little to calm international markets.<\/p>\n\n\n\n<p>In any case, a more constructive approach to engaging India \u2014 and food exporting states more broadly \u2014 should begin by acknowledging the complex balancing act they undertake within the global food order. Food exporting states hold a dual mandate of serving as a reliable supplier in the international food market while also meeting the food security needs of their own populace.<\/p>\n\n\n\n<p>The difficulty of this dual mandate can be gleaned after Russia\u2019s invasion of Ukraine, when India stepped up to fill the gap in international wheat exports created by the conflict. India increased wheat exports to over 1.4 million tonnes in April 2022 \u2014 roughly\u00a0five times\u00a0the exports from April 2021. But increased wheat exports led to domestic shortages and a surge in domestic and international wheat prices, culminating in India\u2019s wheat export ban in May 2022, which\u00a0continues into 2023.<\/p>\n\n\n\n<p>Apart from banning wheat exports, India also\u00a0rolled back\u00a0its massive COVID-19 food distribution program, Pradhan Mantri Garib Kalyan Anna Yojana, on 1 January 2023. The program had previously allocated additional grains for public distribution to poorer consumers, but the government decided to reallocate these grains to domestic markets to\u00a0quell inflation\u00a0and appease the urban middle class.<\/p>\n\n\n\n<p>India\u2019s recent rice export bans can be better understood as an extension of the problems faced by its wheat sector. As wheat and rice are substitutes in India\u2019s grain stockpiles, wheat shortages feed into the rice shortage. This cycle led to a fast rise in domestic food prices in mid-2022 and the need for a minimum rice export price restriction by September 2022. India\u2019s food price inflation continued to increase by 11.5 per cent in July 2023, causing the government to enact the recent rice export restrictions.<\/p>\n\n\n\n<p>Rather than pressuring India into normalising its rice trade, a more effective approach would be to address the \u2018double burden\u2019 that lies at the core of its export restrictions. A multilateral approach could be a potential \u2018middle way\u2019 to\u00a0curb the escalation\u00a0of an international food price crisis. This approach would involve providing international capital assistance to bridge India\u2019s financing gaps in domestic subsidisation, ensuring affordable prices for both its poorer and middle class populations. These subsidies could help supplement the real incomes of its population, keeping food prices lower and removing the need to ban grain exports.<\/p>\n\n\n\n<p>A multilateral approach would also allow India to continue exporting rice internationally, premised on the support it expects to receive in exchange. This solution would compensate India for its role as net food exporter in the current global food order. Implementing this multilateral approach could build on the\u00a0Global Food Import Financing Facility\u00a0proposed by the UN Food and Agriculture Organization to the International Monetary Fund. This facility aims to support poorer food importing countries facing balance of payments constraints or budget shortages and can potentially be extended to include India, as well as other lower-income food exporting countries.<\/p>\n\n\n\n<p>Should the\u00a0Indian rice ban\u00a0extend, countries that depend on rice trade for revenue, imports and consumption might begin to\u00a0speculate on prices\u00a0as they seek to maximise profits and minimise costs, potentially triggering a situation akin to the 2008 global food price crisis. Though global grain prices would still increase with a multilateral solution, the prospects for a worse crisis could be mitigated.<\/p>\n\n\n\n<p>If an international price crisis were to occur as a result of an extended Indian export ban, this would no doubt lead to further price instability. Exploring multilateral solutions is therefore critical for an already embattled global food supply chain, amid Russia\u2019s war in Ukraine and projected reductions in crop harvests during the\u00a0El Nino season.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Much criticism has been levelled against India\u2019s July 2023 decision to \u2018ban\u2019 non-basmati rice exports, which previously made up a third of its milled rice exports. Critics have further argued that the move by India, as the world\u2019s largest rice exporter, could damage its claim to\u00a0lead the Global South, falling far from its promises to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[176],"tags":[46,167,160],"class_list":["post-9254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-asian-rice","tag-indian-rice","tag-rice-export"],"acf":{"enable_premium_overlay":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India\u2019s rice export restrictions need multilateral solutions - Rice News Today<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India\u2019s rice export restrictions need multilateral solutions - Rice News Today\" \/>\n<meta property=\"og:description\" content=\"Much criticism has been levelled against India\u2019s July 2023 decision to \u2018ban\u2019 non-basmati rice exports, which previously made up a third of its milled rice exports. 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