Inflation may increase due to ban on export of non-basmati rice, IMF gave this update
The International Monetary Fund (IMF) said it would encourage India to lift export restrictions on a certain category of rice. They believe that keeping the sanctions in place could have an impact on global inflation and that such an action could lead to retaliatory action from other countries. The central government imposed the ban on July 20.
The International Monetary Fund (IMF) has said that it will encourage India to lift restrictions on the export of a certain category of rice. He believes that the continuation of the ban could have an impact on global inflation.
The Indian government on July 20 banned the export of non-basmati white rice to boost domestic supplies and keep retail prices in check during the upcoming festivals. The Food Ministry had said in a statement that there would be no change in the export policy for non-basmati rice and basmati rice.
Both varieties account for a major share of the total exports. Non-basmati white rice accounts for about 25 percent of the total rice exported from the country. International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas said here that such restrictions in the current situation are likely to create volatility in food prices in the rest of the world.
Not only this, but other countries can also take retaliatory steps with this kind of action. He said in response to a question, "So we would definitely encourage India to remove restrictions on exports in this way because these can have an adverse effect on the world." Non-basmati white rice from India is mainly exported to Thailand, Italy, Spain, Sri Lanka, and the USA.
