India’s decision to hinder exports of some kinds of rice could lead to food price raising and should be reversed, International Monetary Fund chief economist Pierre-Olivier Gourinchas said on Tuesday. Mr Gourinchas conveyed a news conference that India’s restriction would have a same result to the suspension of the Ukraine Black Sea grain export deal, supporting to raise prices in other nations. He also said that global grain prices could rise 10 per cent to 15 per cent this year.
“In the present environment, these kinds of hindrances are likely to exacerbate volatility on food prices in the other areas of world, and they can also result in retaliatory measures,” Mr Gourinchas said. “We would encourage the eradication of these kinds of export restrictions because they can be destructive globally.”
India is the world’s hugest rice exporter. Last Friday, it declared a ban on shipments of non-basmati white rice to maintain domestic prices at comfortable levels ahead of the general election due in early 2024. The government stopped overseas sales of the grain with sudden effect. The authorities said shipments would be accepted on the basis of permission given by the Indian government to other nations to meet their food safety requirements and based on requests of their governments.