India's Restriction On Rice Exports Could Lead To Food Inflation.

India banned exports of broken rice and also imposed a 20% duty on exports of various grades of rice as the world's biggest exporter of grain tries to augment supplies and calm local prices after below-average monsoon rainfall curtailed planting.

India exports rice to over 150 countries, and any reduction in its shipments would increase upward pressure on food prices that are already rising because of drought, heat waves, and Russia's invasion of Ukraine.

The new duty is likely to discourage buyers from making purchases from India and prompt them to shift towards rivals Thailand and Vietnam.

The government has excluded parboiled and basmati rice from the export duty, which will come into effect from Sept. 9.

Govt also banned exports of 100% broken rice, which a few poor African countries import for human consumption, though that variety is mainly used for feed purposes.

The duty will affect white and brown rice, that account for over 60% of India's exports, said B.V. Krishna Rao, president of the All India Rice Exporters Association.

India accounts for over 40% of global rice shipments and competes with Vietnam, Pakistan, Thailand, and Myanmar in the world market.