Why NRIs in the US are packing rice bags from India

According to a report by the Times of India, the ban has triggered panic buying in North America, Europe, and West Asia over a possible shortage of rice. This has led to long queues outside Indian grocery stores in the region.

The English daily mentioned that several grocery stores in major cities in Texas, Michigan, and New Jersey are crowded with people, especially from the Tamil community.

As per the TOI report, a bag of 9 kg of rice is sold at $27. The stores have placed certain conditions for customers purchasing rice such as one rice bag per customer would be sold.

Meanwhile, in the UK, and Ireland no rush at the grocery stores for rice was witnessed, the daily quoted a restaurant owner.

India, which accounts for 40% of world rice exports, on 20 July, st, which climbed to multi-year highs in recent weeks as erratic weather threatens production.

Global demand saw Indian exports of non-basmati white rice jump 35% year-on-year in the second quarter.

Countries expected to be hit by the ban include African nations, Turkey, Syria, and Pakistan — all of them already struggling with high food-price inflation.

Top buyers of Indian non-basmati rice include Benin, Senegal, Ivory Coast, Togo, Guinea, Bangladesh, and Nepal.

Last year in September, India banned the exports of broken rice and imposed a 20% duty on exports of non-Basmati rice, except for parboiled rice amid concerns about overestimated low production due to a fall in area under paddy crop but lifted the ban in November.

India had already curbed exports of wheat and sugar last year to rein in prices.

Rice is a major world food staple and prices on international markets have soared to decade highs as the world grappled with the Covid pandemic, the war in Ukraine, and the impact of the El Nino weather phenomenon on production levels.

Updated: 23 Jul 2023, 02:03 PM IST