A leading trade body has urged the Indian government to permit the export of 1 million metric tons of a high-quality non-basmati rice variety that is highly favored by overseas Indians. These individuals have been facing difficulties in obtaining their staple food after the government of New Delhi imposed a ban on exports.
Last month, the largest rice exporter in the world took the market by surprise by enforcing a ban on non-basmati white rice exports. This decision came in response to a 3% increase in retail rice prices within a month, which was triggered by the substantial damage to crops due to late but intense monsoon rains.
Read More: India prohibits non-basmati white rice exports amidst supply concerns
Following the ban, panic buying swept across numerous countries, ranging from the U.S. and Canada to Australia, as thousands of overseas Indians rushed to grocery stores and retail chains to secure their staple food. This surge in demand led to some shops implementing purchase limits to manage the situation.
Read More: India’s rice export ban triggers panic buying among NRIs in the US
According to a letter from the Rice Exporters Association to the government on Monday, the price of sonamasuri rice, predominantly produced in southern India and favored by South Indians living abroad, experienced a significant surge after the export ban was imposed.
In the letter, the association proposed that the government establish a base price of $1,000 per metric ton for sonamasuri rice and allocate an annual export quota of 1 million metric tons.
