IMF pushes India to lift export restrictions on non-basmati white rice

New Delhi, July 26 (KNN) The International Monetary Fund (IMF) has said it would encourage India to do way export restrictions on a certain category of rice as it would have an impact on global inflation.

On July 20, the Indian government banned the export of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season.

This type of rice constitutes about 25% of total rice exported from the country.

The Indian government said there would be no change in export policy of par-boiled non-basmati rice and basmati rice, which forms the bulk of exports.

In the current environment, these types of restrictions are likely to exacerbate volatility on food prices in the rest of the world. They can also lead to retaliatory measures, Pierre-Olivier Gourinchas, Chief Economist, IMF, told a press conference.

“So, they are certainly something that we would encourage the removal of these types of export restrictions, because they can be harmful globally,” he said in response to a question.

The total exports of non-basmati white rice from India was USD 4.2 million in 2022-23 as against USD 2.62 million in the preceding year. Major destinations of India's non-basmati white rice exports include the US, Thailand, Italy, Spain and Sri Lanka.  (KNN Bureau)