India Considers Banning Most Rice Exports As Local Prices Surge: Report

The government is discussing a plan to ban exports of all non-Basmati rice, according to people familiar with the matter.

India, the world's biggest rice shipper, is considering banning exports of most varieties, a move that may send already lofty global prices higher as the disruptive El Niño weather pattern returns.

The government is discussing a plan to ban exports of all non-Basmati rice, according to people familiar with the matter. That's because of rising domestic prices and authorities want to avoid the risk of more inflation, said the people, who asked not to be identified as the information is not public.

If implemented, a ban would affect about 80% of India's rice exports. Such a move may lower domestic prices, but it risks sending global costs even higher. Rice is a staple for about half of the world's population, with Asia consuming about 90% of global supply. Benchmark prices have already soared to a two-year high on fears that the return of El Niño will damage crops.

India accounts for about 40% of the global rice trade and has sought to tighten exports of some varieties. Last year, the South Asian nation banned broken rice exports and imposed a 20% duty on shipments of white and brown rice after Russia's invasion of Ukraine sent prices of food staples like wheat and corn soaring. The country has also restricted wheat and sugar exports.