India Imposes Restrictions on Rice Supply: Bloomberg

India has decided to impose additional restrictions on rice supply in an effort to ensure its food security, as reported by Bloomberg.

This move by India could further reduce global grain supplies. Earlier it was revealed that the government has imposed a 20% export tax on rice and limited overseas supplies by approximately 80%.

As India is the largest exporter of rice, prices in global markets may begin to rise. "This step will help lower domestic prices, and it will assist the government in controlling the inflation of food products," said Krishna Rao, president of the Rice Exporters Association.

Indian authorities have added that exporters who had contracts before the new regulation will still be allowed to ship the grain.