While the IMF has raised concerns about the move exacerbating volatility in food prices, experts say the picture on food inflation will be clear only after the monsoon plays out completely.
India’s recent ban on export of non-basmati white rice has created quite a furore internationally. While on the one hand there are worries about the move likely to trigger a rise in global rice prices adversely impacting poor countries, there is also the need to ensure adequate supplies in the domestic market and keep prices in check. While the IMF has raised concerns about the move exacerbating volatility in food prices, experts say the picture on food inflation will be clear only after the monsoon plays out completely.
According to the International Monetary Fund’s chief economist Pierre-Olivier Gourinchas said, “In the current environment, these types of restrictions are likely to exacerbate volatility on food prices in the rest of the world. And they can also lead to retaliatory measures. So, they are certainly something that we would encourage the removal of these type of export restrictions, because they can be harmful globally.”
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