'Every NRI family bought 10-15 bags': Major ban on rice export triggers panic buying in US

India's decision to impose a ban on the export of non-basmati white rice has triggered panic buying among NRIs (non-residential Indians) in the US. India accounts for more than 40 percent of world rice exports, and a cut in shipments could inflate food prices in the US.

Videos and photos doing rounds on social media show NRIs queueing up outside grocery and departmental stores to buy rice while others climb shelves and pull away heavy bags of rice. Videos also showed customers at the stores buying only multiple bags of rice.

There are also fears of hoarding rice and selling it in online forums for a much higher price. "So all the desi stores are out of Indian rice. Every NRI family has bought 10-15 bags of rice because India has blocked the export of “non-basmati” rice. Therefore high IQ NRIs have hoarded 100-200 kg of basmati rice per family. And few are now selling it on Facebook marketplace," commented Niks (@niks_1985).

On Thursday, the Food Ministry said in a statement that the ban on the export of non-Basmati rice would "ensure adequate availability" and "allay the rise in prices in the domestic market". It cited 11.5 percent increase in retail prices over 12 months and that global demand saw Indian exports of non-basmati white rice jump 35 percent year-on-year in the second quarter.

The increase came even after the government banned broken rice shipments and imposed a 20 percent export tax on white rice in September.