DNA Special: Why India banned the export of rice, and how it will impact its citizens

India is the largest exporter of rice in the world. It means people from many countries depend on Indian rice. But the Government of India (GOI) has banned the export of all types of raw rice except basmati rice. However, this decision has created a danger of increasing the prices of rice in countries around the world.

But why did India ban the export of all types of raw rice except basmati rice? The government took the decision to reduce the rising prices of rice in the country. Retail prices have increased by 11.5% in the last one year and 3% in the last month.

This time in India, the weather has changed many times, which has also affected the rice crop. Monsoon rains have been heavy in the rice-producing states of North India, while there are some parts of the country where the rainfall has been less this time. This unexpected weather change has affected the rice crop.

Due to heavy rains in North India, newly planted crops in Punjab and Haryana were damaged and many farmers had to replant. States like West Bengal, Maharashtra and Karnataka have reduced paddy sowing. While West Bengal is a major paddy-producing state.

The share of non-basmati white rice in the total rice exported from the country is about 25 per cent. In 2022 also, the government had imposed a 20 per cent export duty on non-basmati white rice. But despite the imposition of export duty, the export had increased to 42.12 lakh metric tonnes in 2021-22. In the current financial year 2023-24, 15.54 lakh metric tonnes of rice of this variety have been exported during the period from April to June.

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Whereas in the same period of the financial year 2022-23 i.e. April-June, 11.55 lakh metric tonnes of rice was exported. Ban on export of rice will benefit the people of India as it will bring down the prices. People will get relief from inflation.