Quote by Pushan Sharma, Director-Research, CRISIL Market Intelligence and Analytics following ban on white rice exports
City Air News
Jul 20, 2023 09:57
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“Despite two curtailing moves last fiscal -- ban on broken rice exports, and 20% duty on non-basmati exports – India’s overall rice exports rose 5-6% even as overall production fell.
To boot, as of July 1, 2023, rice stock with the Food Corporation of India is down a fifth on-year.
The consequent tight supplies meant domestic prices rose 14-15% last fiscal.
The government clearly viewed these as red lines from a domestic food security and inflation point of view.
We expect Thursday’s blanket ban to reduce India’s rice exports by ~4-5 billion tonne this fiscal, or more than a fifth of what was exported last fiscal.
That should improve domestic supplies and have a moderating effect on retail prices.
India has been the biggest exporter of rice in the past couple of years, accounting for a third of global exports.”
