The USA, European Union (EU), and Canada have criticized the Indian government's restrictions on rice exports aimed at maintaining domestic stocks and controlling prices. The countries termed India's decision as an unnecessary trade barrier, saying it would hamper the impact of food in areas where there is demand. News from The Economic Times.
In a meeting of the Agriculture Committee of the World Trade
Organization (WTO) last Wednesday (September 27, 2023), some countries
including Japan, Australia, Brazil, the EU, the United Kingdom, and the United States
of America expressed concern about the impact of this ban on the global food market.
That is because India is the world's largest exporter of rice. India exports 40
percent of the world's rice.
India last July banned the export of all types of rice
except Basmati. The country's government imposed a 20 percent duty on the
export of parboiled rice in the next month i.e. August. However, heavy rains
during the monsoon season caused heavy crop damage a reason for this
restriction.
Regarding last Wednesday's meeting, a Geneva-based official
said that member countries have argued that such measures would adversely
affect countries that are more dependent on rice imports, especially during
this crisis.
Based on data from the US Department of Agriculture, the
country is claiming that India will produce a record amount of rice in the current
fiscal year. According to their forecast, India will produce 13.4 million
tonnes of rice in the current financial year and store 3.6 million tonnes.
In this context, the Geneva-based official said, the United
States has requested India to lift restrictions on four exports.
Although India has said that they have taken such steps to
ensure food security for 1.4 billion people.
Meanwhile, the United States and other countries have
criticized the lack of advance notice in imposing restrictions. India's argument
in this regard is that the country has not given any advance notice to avoid
manipulation by traders in the rice market.
Source:
Online/GFMM
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