India's rice export ban creates frenzy in North America

Indians in North America are reportedly hoarding rice after the Indian government decided to ban exports of non-basmati white rice to keep domestic prices stable ahead of general elections in early 2024.

Thousands of Indians living in the US and Canada rushed to grocery stores and retail chains to buy rice soon after India imposed a ban on exports of non-basmati white rice on the evening of July 20.

According to Business Line, “several shops are reporting shortages after hundreds of Indians, especially South Indians, tried to buy a few bags of rice each in a panic.”

“The news of the export ban has created a frenzy. And we are all participating in that frenzy,” said Gangadhar, a non-resident Indian (NRI) in the US.

Indian grocery stores in the US have started raising rice prices to take advantage of the opportunity. A 9 kg bag of rice now costs $46.99, three times higher than the $15-$16 price before the export ban, according to Business Line.

“Bags of rice that previously cost $15 to $20 are now being sold for as much as $50 or even more in some locations. Furthermore, some grocery stores have come up with ideas that force customers to spend at least $35 to $50 on other items to buy a single bag of rice,” CNBCTV18 reported.

Unable to meet the demands of panicked customers, the owner of an Indian store in Mason, Ohio, limited each customer to one bag of white rice.

World - India's decision to ban rice exports creates a fever in North America — Farmers plant rice in a field on the outskirts of Amritsar, India. Photo: The Guardian

“Perhaps the Indian government is not thinking about the millions of people living abroad who are buying white rice at high prices of over $600 a tonne,” said a trader in New Delhi.

“We wonder why Indians are panicking. This ban will be short-lived, maybe six months at most,” the trader said.

Meanwhile, an NRI in the UK said he usually buys only Pakistani rice. “In some places, it is very difficult to find Indian rice. Even if the packaging says Indian, no one knows for sure whether it is really from India or not. It could be from Pakistan but labelled as Indian,” he added.

The North American market, including the US and Canada, imported 64,330 tonnes of non-basmati rice from India in 2022-23. India's two major overseas markets, the Gulf countries and Europe, imported 60,950 tonnes and 73,000 tonnes from India last year, respectively.

The South Asian country exported 17.78 million tonnes of non-basmati rice in 2022-23, slightly higher than 17.26 million tonnes in 2021.

India accounts for more than 40% of the world's rice exports. India's rice exports are expected to hit a record 22.2 million tonnes in 2022, more than the combined exports of the next four rice exporters, Thailand, Vietnam, Pakistan and the United States.

More than the next four largest grain exporters, Thailand, Vietnam, Pakistan and the United States, combined .

Nguyen Tuyet (According to CNBCTV18, Business Line)

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