India’s ban on rice exports is causing global apprehension over potential copycat restrictions.
According to a Reuters report, the world market is bracing for similar actions by rival suppliers in an attempt to avoid potential domestic shortages. This is in response to the 10 million metric ton gap left by India, which could exacerbate global food inflation.
The recent restrictions mirror those imposed by India in 2007 and 2008, which led to a domino effect of export curbs by other countries. India now accounts for over 40% of global rice trade, up from 22% 15 years ago, intensifying pressure on other rice-exporting nations like Thailand and Vietnam.
The ban has already driven rice prices to 15-year highs. Exporting countries such as Thailand, Vietnam, and Pakistan are keen to boost sales due to growing demand, but face constraints in their surplus capacity for exports. This could potentially trigger another surge in prices.
Global rice prices have risen by approximately 20% since India’s ban. A further 15% increase could lead to restrictions by Thailand and Vietnam.
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