Ban on rice export will harm the country's farmers

- India's contribution to the world's rice business is 40 percent

- Occasional

- Wheat exports were banned in May 2022, stocks were limited, yet wheat prices rose.

As soon as India has banned the export of rice, lines have formed for rice in America. People have started stocking up for the month. The influence of rice can be understood when the International Monetary Fund (IMF) asked the Indian government to lift the ban on exports. While the government has found a way to deal with potential shortages in India by banning the export of rice, banning the export of food-related items is not a permanent solution.

By banning the export of rice, the government has strengthened the supply of pulses and rice in the country. But can grain prices be controlled in this way? The government banned the export of wheat in May-2022. At the same time, the traders of the country also indicated the stock limit. However, wheat prices rose. Both the idea and the system of exporting food products seem to be based on the 1960s. When India is leading the G-20 countries, decisions should be taken keeping in mind the situation of all countries.

If India stops exporting rice, global rice prices will increase, as India contributes about 40 percent to the world's rice business. The impact of the ban on rice exports will be a blow to farmers producing rice locally, as they will get lower selling prices in the country. Those producing export quality rice were getting a good price. Some farmers are producing quality products that are sold abroad instead of selling the product in the country. The main reason behind it is to fetch higher prices.

Both wheat and rice are the most produced and most consumed commodities. Under the PM Garib Kalyan Anna Yojana, the government provides five kg of rice and wheat to 800 million people. The government's calculation of the ban on rice exports is not understood by market experts, as there is about three times the stock of 40 million metric tonnes against the buffer stock of 13.5 metric tonnes on July 1. It seems that the government wants no shortage on its free distribution scheme. The government does not think that the purchasing power of the people has increased. Even today lakhs and crores of people do not take advantage of government assistance, do not use ration cards or eat food grains allotted to the working class.

Shortage of tomatoes is creating a new problem for the government. Tomatoes may not be a staple and can go without, but the middle class consumes them a lot. Sometimes onions, sometimes tomatoes, sometimes potatoes, the prices of daily consumed vegetables go very high in an unaffordable manner, due to which they disappear from people's plates.

It is said that tomato prices will decrease in August-September, but onion prices may see an increase. The production of vegetables may depend on the season, but the government is monitoring the production of food grains. The government still needs to focus on milk and milk products. Its prices may also rise. It says that in June 2023, an increase of 8.56 percent was seen in milk and its products. The government tried to control prices at the domestic level by reducing the import duty on milk products.

At present, the production of food grains and vegetables may be hit due to rain. Its effect can be seen during Diwali festivities. Due to the effect of El Nino, production of food grains is likely to decrease in Madhya Pradesh, Rajasthan and Maharashtra.

When the prices of Tuwer dal are skyrocketing, the government should import it from countries like Mozambique, Myanmar. By banning the export of rice, the government has hit the income of farmers producing rice locally. Agriculture experts believe that the government should reduce the duty on rice imports, stack them and resume exports.