Amidst India's announcement of a ban on the export of non-basmati rice, panic buying of rice was witnessed at departmental stores across the US. In response to the escalating demand, many stores have imposed restrictions on the number of rice bags customers can purchase, leading to reports of empty shelves.
Numerous stores have put up notices stating "only one rice bag per family" to manage the situation and ensure fair distribution. However, concerns about hoarding have also arisen, with apprehensions that some may stockpile rice and attempt to sell it at significantly higher prices through online forums.
The impact of India's export ban on non-basmati rice has reverberated globally, particularly among the Indian diaspora. Many non-resident Indians (NRI) have reportedly bought 10-15 bags of Sona Masoori rice in response to the ban.
Multiple NRIs took to Twitter to share the impact of the export ban on rice. Many user shared videos of sheer panic buying and rush at the grocery stores.
However, Kiran Kumar Pola, the director of leading rice exporter of Deccan Grains India said that NRIs in USA need not worry about availability of rice as there are enough stocks in US and it will last for six months.
Assuring that there are enough stocks of non-basmati rice in USA market even after the export ban by India, a group of rice exporters from Telangana requested The Agricultural and Processed Food Products Export Development Authority (APEDA) to reclassify and lift the prohibition.
Even though the authorities and experts have said that there is enough stock for next 6 months, many NRIs on Twitter complained about the sky rocketing prices in grocery stores in US which is usually caused because of short supply and higher demand.
“Unbelievable Loot, $15 unknown branded rice bag is now $35-$50. Desi grocery chains are literally looting Telugu folks in the US,” said a Twitter user.
As per the reports, the export ban is only on non-Basmati rice and Basmati rice is still allowed to trade outside from India. Majority of South Indian have an appetite for Sona Masoori rice, which is a type of non-Basmati rice.
The Indian Food Ministry addressed the situation and said that the export ban is essential to ensure sufficient availability and stabilise prices in the domestic market.
The Ministry cited a significant 11.5 percent increase in retail rice prices over the past 12 months, along with a 35 percent year-on-year surge in Indian exports of non-basmati white rice during the second quarter, driven by global demand.
According to reports, the price of a 9.07 kg rice bag which was earlier quoted at $16-18, has now doubled and in some places, the price went up to as high as $50.
As per the statistics, on an average, 6,000 tonne of non-basmati rice is exported from India to the USA every month. Telangana and Andhra Pradesh account for 4,000 tonne.
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