India's rice export ban could send decade-high prices higher
India banned the exports of non-basmati white rice with immediate effect late Thursday, the latest in the government's effort to rein in high food prices.
The Ministry of Consumer Affairs said the ban would help ensure "adequate availability" of non-basmati white rice in India, as well as "allay the rise in prices in the domestic market."
India is the world's leading rice exporter, accounting for more than 40% of the global rice trade, as well as the second-largest producer after China.
Analysts told CNBC this week's ban could send already elevated prices shooting even higher, compounding effects from the country's September ban on shipments of broken rice.
"Global rice [supplies] would drastically tighten ... since the country is the world's second top producer of the food staple," said Eve Barre, ASEAN economist at trade credit insurer Coface.
Barre said Bangladesh and Nepal would be hardest hit by the ban, as both countries are top export destinations.
Source: CNBC
