Ban On Non-Basmati White Rice Exports May Bring Relief To Indian Consumers
Natural disasters such as extreme flooding in the north and relatively poor rainfall in some of the states have also impacted rice sowing this year
While the decision is creating havoc around the world as over 140 countries bought non-basmati white rice from India in FY23. However, in India, the decision may bring relief to Indian consumers, said the State Bank of India in a report on Sunday.
The report stated that many consumers, especially in the south zone, were people paying over Rs 50 for a kilo of rice. Natural disasters such as extreme flooding in the north and relatively poor rainfall in some of the states have also impacted rice sowing this year.
The Indian government decided on 20 July to ban the export of non-basmati white rice to ensure adequate availability in the Indian market and to allay the rise in prices in the domestic market.
Also, as per the data, the exported share of non-basmati white rice surpassed the 80 per cent mark in the last two fiscal years.
Talking about global edible oil prices, the report mentioned that the expiry of safe Black Sea grain exports from Ukraine’s ports is putting uncertainty in the already volatile exports of Sunflower oil from the Ukrainian region.
India has already substituted sunflower oil imports with Palm oil Imports. Palm oil is mainly produced in Indonesia, Malaysia region which is being hardly hit by the El-Nino event along with Indian Ocean Dipole (IOD) creating the dry climatic conditions, it mentioned.
For the Indonesia and Malaysia region, positive IOD is associated with dry phase and negative IOD is associated with the wet phase. The report also said, “Declining Palm oil Imports from Indonesia can impact Headline CPI going forward.”
Every one thousand tonne loss in crude palm oil production in Indonesia due to El Nino supported by IOD conditions decreases its exports to India by USD 0.061 million and the same then increases oil and fat CPI by three basis points.
The report further mentioned that every one thousand tonne loss in crude palm oil production in Malaysia due to El Nino supported by IOD conditions, decreases its exports to India by USD 0.105 million. “However, the same has no statistically significant impact on oil and fat CPI,” it stated.
Indonesia is a major trading partner for crude palm oil imports than Malaysia, which has a major impact on creating inflationary pressures in India. “With the weight of 3.56 of Oil and Fat CPI in Headline CPI, Headline CPI could be impacted may be due to declining palm oil imports alone in such a scenario,” the SBI report added.
Source Link :- https://www.businessworld.in/article/Ban-On-Non-basmati-White-Rice-Exports-May-Bring-Relief-To-Indian-Consumers-/07-08-2023-486788/
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