On July 20, India banned the export of all types of rice, except basmati rice, which is produced mainly for export, to stabilize rice prices and prevent domestic food shortages due to harsh climate.

In a recent analysis report, British bank Barclays said Malaysia appears to be the most vulnerable country due to its heavy dependence on Indian rice. Malaysia imports rice mainly from abroad, of which Indian rice accounts for a relatively large proportion. In addition, Singapore is also likely to be affected because Indian rice accounts for about 30% of its rice imports. Barclays analysts said Singapore is asking India to exempt it from the rice export ban.

Farmers plant rice in a field in Nagaon, Assam state, India, July 27, 2023. Photo: VNA

Rice prices are currently hovering at their highest levels in a decade as El Nino weather phenomenon brings heavy rains and droughts that have hit production in India and other major Asian rice producers. Barclays analysts said the Philippines would be hardest hit by a rise in global rice prices, given the country’s heavy weight in the consumer price index (CPI) basket.

However, Asia is not the only region affected by India’s rice export ban. According to BMI Research, a market research firm at Fitch Solutions, vulnerable markets include sub-Saharan Africa and the Middle East-North Africa (MENA) region, particularly Djibouti, Liberia, Qatar, Gambia and Kuwait.

India’s ban on exports of regular rice has caused concern among consumers who have become accustomed to eating the staple food, with stores across the world forced to adjust prices and limit supplies as people – mostly from South Asian communities – rushed to stock up.

Statistics show that the price of ordinary rice in India increased by nearly 10% in July. If in September last year, a ton of ordinary rice in India cost about 330 USD, it has now reached 450 USD. India is the world's largest rice producer, accounting for more than 40% of global rice exports.

VNA

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