India’s government announced on July 20 that it would ban the export of rice, with the exception of Indian champagne, in order to ensure that there is sufficient supply of rice in the domestic market and to mitigate the rise in market prices.This move could lead to about half the exports of the world’s largest rice exporters, raising concerns that global food prices could rise further.

India is the world’s largest rice exporter, with a record 21.5 million tons of rice exports in 2021, accounting for more than 40% of global rice exports, and its rice export destinations cover more than 100 countries, and this new export ban will affect about 80% of India’s rice exports.

Recently, domestic rice prices in India have risen, with retail prices rising by 3%, up 11.5% compared to the same period. While the Indian government’s ban could lower domestic prices, global rice prices could rise further against the background of the El Ni?o weather pattern threatening crops.

In addition, the Indian government has imposed restrictions on wheat and sugar exports, but still faces high prices for cereals, fruits and vegetables.

Global rice prices have been roaming at their highest in 11 years, and this new ban could further push prices up.B.V. Krishna Lao, president of the Association of Rice Exporters, said India’s impact on the global rice market could be much faster than Ukraine’s impact on the global wheat market after the outbreak of the war in Russia.