The world was shocked by the news of India banning the export of its non-basmati white rice effective Thursday.
The Ministry of Consumer Affairs said it aims to help ensure adequate availability of non-basmati white rice in India and moderate price increases in the domestic market.
India is the world's leading exporter of rice, accounting for over 40% of global rice trade and the second largest producer after China.
The move is seen to add pressure to already rising prices, thus re-warming global inflation.
Among the countries that will be worst affected by this restriction are definitely Bangladesh and Nepal which are the main export destinations.
According to the Ministry of Consumer Affairs, non-basmati white rice makes up about 25% of India's rice exports.
Analysts see that affected importers may turn to alternative suppliers in the region, such as Thailand and Vietnam.
Why is the price of rice increasing?
Prices are already hovering at a decade high, partly due to tight supplies as they become alternatives to other major grains affected by the Ukraine-Russia war.
Wheat prices surged again this week after Russia pulled out of the Black Sea grain deal, which previously played a role in averting a global food crisis by allowing Ukraine to continue exporting.
India is also struggling with high prices of vegetables, fruits and grains, where tomato prices have soared more than 300% in recent weeks due to bad weather.
