Panic buying among the Indian diaspora and other Asian communities across the US has been brought on by the export prohibition on non-basmati white rice.

India: Indian government's recent prohibition on the export of non-basmati white rice has shocked American Asian communities. The decision by India's Food and Consumer Affairs Ministry, intended to stabilise domestic retail prices due to rain-related production issues with rice, has sparked panic-buying and rice stockpiling at grocery shops across the United States.

With immediate effect, the Food and Consumer Affairs Ministry on July 20 banned the export of non-basmati white rice in an effort to stabilise the nation's unstable retail pricing. Rice output has decreased as a result of meteorological fluctuations, such as intense monsoon rains in rice-producing States in the north and a lack of rainfall in other regions of the nation.

The most frequently consumed stable food among Indian and Mexican expatriates is white rice. The administration declared that the ships that were loading at the ports would be permitted to export as soon as the prohibition went into effect. The parboiled rice, which made up an estimated 7.4 million tonnes of exports last year in 2022, has not been outlawed by the government.

India is the top exporter of rice in the world, providing about 40% of the demand in more than 140 nations. Africa is one of India's main export markets for rice. The top producers and significant international suppliers of rice are China, India, Thailand, Vietnam, and Pakistan. Due to the surging domestic prices and concerns about the deficiency during the crop yield, it halted export increase.

In order to prevent severe food shortages and lower costs at home, non-resident Indians (NRI) in the US and Canada are opposing India's restriction on the export of non-Basmati rice to both nations. Due to widespread panic buying of the essential at department shops, rice prices in several grocery stores in the United States and Canada rose dramatically overnight.

The average price of rice has increased by a staggering 11%. Due to a sudden increase in demand, stores in Canada that serve South Asian communities put limits on both the number of bags a consumer can purchase per family and the costs.

India's Ministry of Consumer Affairs said, “Due to recent severe rains and flooding in various regions, rice prices have increased inside the nation by a startling 11.5% over the previous year and 3% over the past month. To ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market. The ban will take effect immediately.”

According to TechSci Research, the export of rice is banned, which has a substantial impact on the global and domestic agriculture markets. India produces and exports majority of rice in the world, making up a sizeable portion of the total rice trade. An international rice supply-demand inconsistency would result from a ban on Indian rice exports since there would be less rice available. This can lead to a lack of rice and increased costs in importing nations that rely largely on Indian rice. The ban placed by India is anticipated to increase food prices worldwide, cause market shock, and worsen inflation. It comes just after Russia backed out of a grain agreement that would have allowed Ukrainian wheat to travel safely through the Black Sea routes amid the ongoing conflict.

India's decision to forbid rice exports have been driven by a desire to protect domestic food security and maintain price stability. The Indian government attempts to protect enough rice supply for its own population through export restrictions, particularly in times of economic turbulence or because of unfavourable weather that could affect agricultural productivity. However, this action would cause resentment among importing countries, who might interpret it as a disruption of world trade and run into difficulty obtaining rice from alternative sources.

Additionally, Indian farmers may be impacted by the rice export prohibition. While it would ensure stable pricing and demand for domestic rice growers in the short term, it might also limit their access to global markets and chances for greater profits. Farmers will find it difficult to diversify their sources of income if the prohibition lasts for a long time; this could result in a greater reliance on government assistance.