'We Encourage Removal Of These Type Of Export Restrictions', Says IMF After India Bans Export Of Non-Basmati White Rice

The International Monetary Fund has said it would "encourage" India to remove export restrictions on a certain category of rice in order to mitigate the impact on global inflation.

To ensure sufficient domestic supply and control retail prices during the upcoming festive season, the Central government implemented a ban on the export of non-basmati white rice on 20 July. This type of rice accounts for about 25 per cent of the country's total rice exports.

The export policy for par-boiled non-basmati rice and basmati rice, which make up the majority of India's rice exports, will remain unchanged, according to a Food Ministry statement.

"In the current environment, these types of restrictions are likely to exacerbate volatility on food prices in the rest of the world. And they can also lead to retaliatory measures," said Pierre-Olivier Gourinchas, Chief Economist of the International Monetary Fund (IMF), during a press conference.

"So, they are certainly something that we would encourage the removal of these type of export restrictions, because they can be harmful globally," he said.

India's exports of non-basmati white rice reached $4.2 million in the 2022-23 period, compared to $2.62 million in the previous year, reports NDTV.

The main destinations for India's non-basmati white rice exports include the US, Thailand, Italy, Spain, and Sri Lanka.