India May Ban Rice Varieties Export

India, which accounts for 40% of global rice exports, may ban the supply of all rice varieties except for Basmati, due to the rise in domestic prices of this commodity. This is reported by TACC, citing Bloomberg.

According to them, the proposed restrictive measures are due to the increase in food prices, as well as the "El Niño" natural phenomenon, which, according to forecasts by the World Meteorological Organization, is very likely to manifest in the second half of the year.

"El Niño" is a cyclical natural phenomenon that occurs due to fluctuations in the temperature of equatorial waters in the Pacific Ocean. The phenomenon results in droughts, wildfires, and heavy rains.

If the ban is enacted, Indian rice exports could be reduced by nearly 80%, the agency reports.

Shares of Indian rice producers have fallen amid news of the potential ban. The country’s largest rice producer, KRBL Ltd., has dropped by 3.7%.

The ministries of food, commerce, and finance in India have not responded to the agency’s request for comments.