Economists are sounding the alarm after India put new restrictions on wheat and sugar exports. Radhika Piplani, an economist from Yes Bank Ltd. warns that rice may be next, as India begins to protect its local food supply.
If India’s rice exports are restricted, up to 40 percent of the world’s supply of rice would be at stake. This is according to the USDA Foreign Agricultural Service. Analysts warn that the move would have a “devastating impact” on global trade, leading to even greater price hikes and increasing starvation around the world.
An inter-ministerial committee that tracks prices of essential commodities discussed the rice reserves in India. They concluded it is not necessary to make export restrictions to protect the rice supply. Indeed, India already has a large inventory of rice, but that’s not the issue at hand. India may restrict its rice exports so the country can utilize its rice reserves to compensate for wheat losses and safeguard against inflation and food security concerns.“Devastating impact” warning as India moves toward halting RICE exports, leading to global mass starvation – Dr. Eddy Bettermann MD