India's rice export ban: US stores opt for ‘Only 1 rice bag per family’ rule amid panic buying by NRIs in the US
As the rice export ban by India has unleashed another level of panic among NRIs and other people of Asia in the US, there have been long queues for people hoarding rice for next one year. To curb the chaos, many US stores have limited the sale of rice to 'Only 1 rice bag per family’
Long queues, empty shelves, and complete chaos in the rice section, have become a common sight at US stores after India imposed ban on non-basmati rice due to crop failure at home.
The move is aimed to bring fairness in the distribution of the edible grain and make it easier for other people to access in the store. The sudden ban on export is likely to impact the price of the grain in the coming time. The expectation of price rise has instigated people to hoard the grain and sell it significantly at higher prices through online forums.
India's rice export ban can fuel food inflation, says IMF
Amid the chaotic response to India's rice export ban abroad, International Monetary Fund chief economist Pierre-Olivier Gourinchas on Tuesday, expressed that the move can increase food price inflation. He also said that the move should be reversed soon.
In a news conference, Gourinchas said that India's restriction would have a similar effect of the suspension of the Ukraine Black Sea grain export deal. The suspension of deal led to increase in prices in other countries. He said that global grain prices can rise by 10-15% in 2023.
"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," Gourinchas said. "We would encourage the removal of these type of export restrictions because they can be they can be harmful globally."
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