India’s ban on rice exports triggers frenzy buying in WA stores
Shoppers looking for their favorite type of Indian rice might be surprised to see empty shelves, after a halt in exports last week left consumers across the globe scrambling to stockpile the Indian staple.
The Indian government banned the overseas sale of non-basmati white rice in an effort to slash prices in the domestic market, according to a government statement. Parts of northern India have been rocked by torrential monsoon rains and floods — endangering yields of rice crops — and the country is entering a general election in 2024.
While the ban does not affect exports of basmati rice or parboiled rice, it will impact several other varieties of rice including sona masoori, which is popular in southern Indian cuisine. And it will cut Indian rice shipments by 25%, government officials said. India is one of the largest producers of the grain, which is a staple in Asia and around the world.
The move has led to shortages, price spikes, and scenes of panic buying across North America, from Ontario to Dallas. Indian grocery stores in the Seattle area have also described runs on rice.
“There’s been a frenzy in the market,” said Kulwant Singh Shah, a local importer of Indian rice. “It’s like what we had initially during COVID: shortages, people filling up carts, emptying the shelves. That’s what we’re seeing with rice right now.”
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Washington imported nearly $13.5 million worth of rice in 2022, the vast majority of it grown in South and Southeast Asia. Indian rice represented nearly a quarter of that number — making India the second-largest single exporter of rice to Washington, after Thailand.
Grocery store chains like QFC and Safeway mainly sell basmati and jasmine rice — varieties which can be readily sourced from other rice-producing countries like Pakistan and Thailand. However, Indian restaurants and specialty food stores rely on several non-basmati varieties (including sona masoori) for their dishes and sales. Those businesses have been hit especially hard.
Redmond’s Swagath Indian Grocery is among those establishments that are completely out of non-basmati rice. Gayatra, an employee who declined to give her last name, said that customers were already “rushing the shelves” within a few days of the ban.
“Every day, people are asking when the next shipment of rice is,” Gayatra said. “I tell them, ‘We don’t have more information.’ “
The Indian government didn’t state when the ban will end.
Pride of India, another Indian food store in South Lake Union, was forced to limit customers to two bags of rice a day, to prevent similar levels of “panic buying.”
“We have rice [products] that aren’t even that popular flying off the shelves,” said Jaswinder Singh, the store’s owner. “People are buying them just as a precautionary measure.”
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The store still has ample supply of basmati rice and other rice products, the owner said. However, their stock of sona masoori rice — a popular variety that is cheaper and more plain than basmati — has been almost depleted.
Jaswinder Singh had tried to stockpile a reserve of rice last week, almost immediately after the ban was announced. He was told that his supplier was already out of stock.
Now, the store has only a few bags left — just enough for a day or two. There is no prospective date for another shipment, Singh said Wednesday.
Wholesalers have had similar difficulties in procuring non-basmati rice. Shah Distributors, a California-based firm, managed to accumulate a two-month supply before the ban took effect — but with the increased demand, it’s unclear just how long that supply will last.
“We are watching the market for significant disruptions,” said Jignesh Bhatt, a company salesperson.
Other distributors have been less fortunate.
Earlier this month, Punjab Trading — the company owned by Kulwant Singh Shah — was charging $5.99 per 10 pounds of sona masoori rice. Last week, the Auburn-based importer had to raise its wholesale sona masoori price about 10%. The increase came before it ran out of stock.
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There is no word as to when their next shipment will arrive, Singh Shah said.
Singh Shah said that wholesale prices of sona masoori rice have likely doubled by now — for those importers that have any left in stock at all.
Given the dwindling quantity of non-basmati rice in North America, Singh Shah expects prices to continue their climb.
“Right now, there is nothing coming in at all,” he said.
The uncertainty of the situation has only deepened consumer panic.
“People don’t know when [imports] for sona masoori are going to get renewed,” he said. “So they’re filling their carts, buying by the pallet-load. “
Singh Shah said that shortages have only been compounded by delays at the ports, which he attributed to customs checks by the FDA and other agencies.
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“The process of [customs inspections] has been backlogged as well,” he said. “Especially with small businesses, it’s even more difficult for us getting this product out there, because we have to deal with vendors and [also] a lot of bureaucratic red tape.”
Even as basmati rice continues to enter the North American market unimpeded, Singh said that consumers should soon expect basmati prices to rise as well.
“As far as basmati goes, it’s getting a surge in demand,” he said. “If someone can’t get sona masoori rice, then they’ll get [basmati]. So across all segments, we have a lot of people buying in bulk.”
It’s not the first time in recent memory that an export ban in India has caused aftershocks for Washington shoppers. Singh Shah said that an ongoing restriction on atta — a type of flour used to bake naan and other flatbreads — has had similar effects.
“It’s a staple, similar to rice,” he said. “It’s a day-to-day item, one of our most used items … within about 20 days [of that ban], prices were slowly beginning to rise.”
Singh Shah said the question of restoring exports is “entirely contingent” on the Indian government. He added that international pressure could play a role — “if the U.S. government wants to urge, ‘hey, we need this product out right now.'”
“The scrutiny that rice is getting right now, it increases our expenses,” he said. “All these factors do. And that something that eventually gets passes on to the consumer.
Source: The Seattle Times
