The government has no plan regarding export of rice. On Monday, a top Food Ministry official said that India, the world’s largest rice exporter, has enough rice stocks and has no plans to restrict exports. After export restrictions on wheat and sugar, it was estimated that the export of rice has been banned.
In a surprise move, India last month imposed a romp on wheat exports. Food Secretary Sudhanshu Pandey said in response to a question that we have sufficient stock of rice, so there is no plan to consider it. He said that there is also stock of rice and production of rice is also good. Talks of ban on export of rice are mere speculations, there is no such plan.
Significantly, India had banned wheat exports on May 13 and capped sugar exports at 100 lakh metric tonnes (LMT) with effect from June 1, anticipating a surge in demand during the upcoming festive season.
rise in inflation
After this decision, there has been an increase in inflation in the middle and lower class households. While retail inflation hit its highest level in eight years, food inflation hit a record 8.38% in April. However, this rate has come down in May.
What does the World Bank report say?
In a recent report presented by the World Bank, it is also important to avoid export and import restrictions, as this can lead to a rise in the price of goods. According to the report, it is necessary to boost the supply of key food and energy items. This will help reduce their prices and expectations of an increase in inflation. The report also pointed out that in the poorest countries at greatest risk of a food crisis, social safety nets must be strengthened.
Impact of the Ukraine-Russia War
The war in Ukraine has led to high commodity prices, decreased supply, contributed to increased food insecurity and poverty, increased inflation, and dire financial conditions. The World Bank said this year growth in emerging market and developing economies (EMDEs) has been cut to 3.4 per cent.