Global rice prices hit 12-year high as India restricts export

Price of rice surged to a 12-year high globally after the Indian government imposed restrictions on sale of all non-basmati varieties overseas which accounted for 80 percent of total rice shipments. India, on July 20, banned the export of non-white basmati rice and imposed a 20 percent export duty on parboiled rice on August 25.

India's share in global rice trade is 40 percent out of which it shipped 4 million tons of basmati rice. Basmati rice was exported to Iran, Iraq, Saudi Arab, United Arab Emirates and the US.

Also Read: Govt introduces additional safeguards to ensure restricted rice varieties are not exported out of the country

In 2022-2023, India exported 45.6 lakh tons of basmati rice for $4.8 billion and 177.9 lakh tons of non-basmati rice for $6.36 billion. India produced  135.54 million tons of rice in 2022-2023 and 129.47 million tons  of rice in 2021-2022.

Other countries too are looking at restrictions on rice export as Myanmar, the fifth-largest rice exporter, is looking to restrict exports and Thailand has advised its farmers to reduce rice cultivation to conserve water.

Also Read: Govt imposes 20% export duty on parboiled rice

The Food and Agriculture Organisation's (FAO) rice index was the highest in July at 129.7 since September 2011.