India banned the export of white (non-basmati) rice immediately after its price rose by 3% in the local market over the past month, and in light of expectations of a decline in the crop.
According to Reuters, India's decision will have a rapid impact on the market, even greater than the impact of the Russian-Ukrainian war on wheat prices last year.
It is expected that African countries will be the most affected by the decision, amid expectations that many countries, India, will demand the resumption of rice shipments.
The delay in monsoon rains until last June affected the Indian rice crop, raising fears of a shortfall in production.
When it rained in the last week of June, it was so heavy that it caused great damage to the crops.
"In order to ensure sufficient availability of non-basmati white rice in the Indian market and mitigate price hikes in the domestic market, the Government of India has amended the export policy of the above-mentioned varieties," a government statement said.
She added that the retail prices of rice increased by 11.5% over the past year and 3% over the past month.
India accounts for more than 40% of world rice exports.
PV Krishna Rao, president of the Rice Exporters Association, told Reuters that India would disrupt the global rice market much more quickly than Ukraine did in the wheat market by invading Russia.
Rice is a staple food for more than 3 billion people, and nearly 90% of this water-intensive crop is grown in Asia.
It comes as global prices are already hovering at an 11-year high.
"The sudden ban on exports will be very painful for buyers who cannot exchange shipments from any other country," Rao said.
He added that while Thailand and Vietnam do not have sufficient stocks to fill the shortfall, African buyers will be the most affected by India's decision.
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