Indian rice exports at risk

India is the largest exporter of rice in the world. The nation witnessed the largest amount of rice export last year in 18.75 million metric tons. In contrast, Vietnam, the second largest exporter, sold about 6.5 million metric tons of rice in the same year. Rice is a staple in diets all over the world. Amidst the food shortage, the Indian government has decided to impose a 20% export duty on rice.

Importers aren’t too keen on the new export tax, and the plan backfired. One million tons of grain is now off in Indian ports as buyers refuse to pay an extra 20%. BV Krishna Rao, Chairman of the All India Rice Exporters Association (AIREA), stated that India has stopped all ships from loading rice cargoes. Another problem is that many buyers have already paid for their orders but are now expected to pay an additional 20%. Rice margin is small, and most buyers are unwilling to cut profits.

Perhaps the Indian government would like the world to see that it has a stronghold over the world’s rice supply. India currently sells to more than 150 countries and now has leverage, given the persistent food shortages.

«Taiwan convoys to the United States with ‘chips of democracy’

The late Queen Elizabeth II excluded from coins »

Related Posts

Leave a Reply

Your email address will not be published.