World's Largest Rice Exporter India
Different from Korean Rice Varieties... Limited Impact on Domestic Market
[Asia Economy Reporter Na Ye-eun] India, the world's largest rice exporter, is reportedly considering export restrictions on rice following bans on wheat and sugar exports.
According to Bloomberg on the 26th (local time), India is targeting rice, a staple food worldwide, as the next focus of its food protectionist trade policies. If rice export restrictions materialize, it is expected to worsen the food crisis and inflation.
Radika Piprani, an economist at Yes Bank, a commercial bank in India, said, "Considering rice export restrictions is just a matter of time." Purnima Bhama, an assistant professor at the Indian Institute of Management, also predicted, "The government will feel the need to replace the soaring wheat with rice to curb domestic price increases and strengthen food security."
Discussions on this matter also appear to be taking place at the government level. The Indian economic newspaper The Economic Times cited a government official saying, "The government is considering export restrictions on three products including rice, in addition to wheat and sugar, and there is a possibility of imposing export volume restrictions on rice similar to sugar."
Another official stated, "The Price Monitoring Committee is closely watching the trends of essential goods such as rice varieties other than Basmati, which is famous for its unique aroma," adding, "Export restrictions on these rice varieties may be considered to ensure domestic supply and prevent price increases."
India ranks second in global rice production after China and holds the largest share of global rice exports at 40%. In 2021-2022, India's rice exports reached 21.2 million tons, three times that of second-ranked Vietnam (6.3 million tons) and third-ranked Thailand (6.1 million tons).
Following Russia's invasion of Ukraine, the export of grains from Ukraine, a global breadbasket, was blocked, causing prices of corn, wheat, and sunflower oil to surge.
However, rice prices remained stable due to abundant production and considerable stockpiles. Bloomberg forecasted that if Indian rice exports are restricted, international rice prices will inevitably soar, and the global population facing hunger could increase by millions.
Meanwhile, fortunately, the domestic rice market in Korea is unlikely to be directly affected. This is because the type of rice produced in India is long-grain (Indica), which differs from the short-grain (Japonica) rice consumed by Koreans.
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