2024-06-19
The Indian rice industry is currently facing significant challenges due to ongoing export restrictions and fluctuating domestic prices. India, the world's largest rice exporter, has maintained curbs on overseas sales to stabilize local prices and ensure domestic supply. These measures, which include a ban on non-basmati white rice and additional duties on parboiled rice, are expected to remain in place at least until the next general election in April-May 2024.
These export restrictions have caused a substantial decline in India's rice exports. For example, between August and November 2023, Indian rice exports fell by 46% compared to the previous year. This reduction has particularly affected non-basmati white rice, with exports dropping by 93% during the same period. The impact of these restrictions has been felt globally, especially in South and Southeast Asia and sub-Saharan Africa, which rely heavily on Indian rice.
Global rice production has also been influenced by adverse weather conditions linked to the El Niño phenomenon, causing production declines in key exporting countries like India and Thailand. Although some countries like Pakistan and the United States have increased their rice production, these gains are not enough to offset the overall decline in global rice exports.
The Indian government’s efforts to control domestic rice prices include issuing warnings to retailers to avoid price hikes. However, high procurement prices and strong local demand, especially from southern states, have kept prices elevated.
