Conversation Reignited: US Urges India to Lift Ban on Non-Basmati Rice!

Tensions over rice trade between India and the United States appear to be heating up. The United States has raised concerns at the World Trade Organization (WTO) regarding India’s ban on the export of non-basmati rice, urging India to lift the ban immediately. The US considers this ban to be an “unnecessary trade barrier.” In response, India has defended its policy, emphasizing that the ban is a regulatory measure, not a restriction, and is essential for ensuring the food security of its 1.4 billion population.

During a recent meeting of the WTO agriculture committee, India clarified that it has granted exemptions from the export ban to countries in need upon their governments’ requests. India’s primary commitment is to secure food security in those nations.

A group of WTO members, led by the US and including Japan, Australia, Brazil, Canada, the European Union, New Zealand, Switzerland, Thailand, and the UK, confronted India on its rice export policy. They argued that the ban had adverse effects on countries heavily reliant on rice imports, especially during times of crisis, as non-basmati rice constitutes around 40% of global rice exports.

India implemented the ban on non-basmati rice exports on July 20th of this year to prevent domestic price surges, particularly during the festival season. This move follows previous bans on the export of broken rice and wheat in September and May of the previous year.

According to information from the US Department of Agriculture, India is expected to have a record rice production of 134 million tonnes and stocks of 36 million tonnes in the 2023-24 period.

The US has argued that, given India’s ample domestic supply conditions, the export ban is unnecessary and hampers the distribution of food to regions where it is most needed. Therefore, it has called on India to lift the export ban without delay.

India maintains that its export ban on non-basmati rice is a crucial regulatory measure to ensure the food security of its massive population. These measures are temporary and are regularly reviewed by the government to make necessary adjustments based on domestic demand and supply situations.

Disclaimer: This blog has been written exclusively for informational and educational purposes. The securities mentioned are for illustrative purposes only and not recommendations. The information is based on several secondary sources on the internet and is subject to change. Please consult an expert before making any related decisions.