As much as 200,000 tonnes of the rice grain are lying at ports, after India changed its export policy wherein it banned exports of non-basmati white rice on July 20, in order to curb domestic prices.
Mint reported, citing people aware of the matter, that this rice is stuck in the absence of customs clearance before the government’s notification.
The newspaper added that most cargos had obtained customs clearance before the directorate general of foreign trade had put out the notification banning white rice exports on the evening of 20 July. However, as much as 200,000 tonnes of the grain are still lying at ports, including 5,000 tonnes at Syama Prasad Mookerjee Port in Kolkata.
On July 25, chief economist at the International Monetary Fund (IMF), Pierre-Olivier Gourinchas, said that India’s restriction on exports of non-basmati rice could exacerbate global food price inflation and should be reversed.
He added that the move would have a similar effect to the suspension of Ukraine Black Sea grain export deal and drive up grain prices in other countries, adding that they could rise by 10-15% this year.
This article has been republished from The Wire