India bans exports of non-basmati white rice to curb domestic inflation

India bans exports of non-basmati white rice to curb domestic inflation. India's move sent prices of rice from several Asian countries soaring in the global market, while traders said prices could rise significantly in the coming days.

India's 5% broken parboiled grade hit a five-year high of between $421 and $428 a metric tonne (£328-334) this week, and was around $424.50 on Friday.

The emergency ban, imposed after heavy rains hit domestic crops, followed the failure of a 20% duty on international exports introduced in September to curb overseas demand, which has surged as extreme weather conditions in the country hit production.

India is the world's largest exporter of rice, accounting for more than 40% of global exports. While the ban does not apply to high-grade basmati rice - India's best-known variety - non-basmati white rice accounts for 25% of exports.

International sales of Indian rice rose 35% in the year to June, leading to a 3% rise in domestic prices in the past month alone. According to the Ministry of Consumer Affairs, Food and Public Supplies, people in India are paying 11.5% more for rice than a year ago.

The Indian government said the ban, introduced Thursday evening, would "ensure adequate availability of non-Basmati white rice in the Indian market" and lead to lower prices for domestic consumers. With national elections due next year and state elections in the coming months, soaring food prices have put pressure on the BJP government in Delhi.

Thailand and Vietnam, the world's second and third largest rice exporters, have recently experienced a 5% increase in their rice prices. Even before the announcement, Vietnam's rice traded at its highest level since 2011 and has since moved higher, while Thailand's variety jumped to levels not seen in more than two years.

Russia's war in Ukraine has affected the global food supply, driving up commodity and grain prices around the world. Russia's decision to withdraw from the year-old UN-brokered Black Sea Grain Initiative, which guarantees safe passage for ships carrying grain, has prompted fresh concerns about a global food crisis.