Diaspora (Commonwealth Union) _ US wholesalers are witnessing a sharp increase in demand for non-basmati rice varieties, particularly Sona Masoori, after India decided to suspend its largest rice export category as a measure to manage domestic prices. The ban on non-basmati white rice, which constitutes about 25% of India’s total rice exports, has raised concerns about potential escalation in global food price volatility. IMF chief economist Pierre-Olivier Gourinchas highlights that India’s restrictions coincide with a period of soaring food prices worldwide, which has been influenced by geopolitical events such as Russia’s invasion of Ukraine in February 2022.
India’s ban on non-basmati white rice exports is expected to impact major buyers, including Benin, Bangladesh, Angola, and others, while cities with significant Indian diasporas in the US are also feeling the effects. US-based wholesalers, particularly in Maryland and nearby states, are witnessing a surge in demand for Sona Masoori rice as customers try to secure south Indian rice varieties before potential shortages. While the premium-grade basmati rice is not included in the export ban, customers are buying up whatever grain they can, whether basmati or the banned varieties.
The ban has raised concerns about potential disruptions in the global rice market, given India’s significant share in rice exports, accounting for more than 40%. B.V. Krishna Rao, president of the Rice Exporters Association, warns that India’s sudden ban could be challenging for buyers who cannot easily replace shipments from other countries.
Indian restaurateurs and businesses catering to the Indian diaspora in the US are also wary of potential impacts on basmati rice supply in the future. While the government focused on banning non-basmati rice exports to address domestic concerns, there are concerns that this move could lead to further complexities in the global food market.
