India has taken the decision to ban the export of non-basmati white rice in response to the threat of impending domestic price surges. Severe rainfall has adversely affected crops in the country, leading to a rise in rice prices of more than 11% in the past year.

At present, non-basmati white rice constitutes around a quarter of India's total rice exports, according to the Ministry of Consumer Affairs, which made the announcement about this change in policy.

Experts have expressed concerns about the potential consequences of this move, as it may lead to an increase in global food prices.

Emma Wall, head of investment analysis and research at Hargreaves Lansdown, has commented on the matter, suggesting that the impact on global food prices is likely to be significant.

India, the world's largest rice exporter accounting for over 40% of global shipments, has banned the export of non-basmati rice to counter domestic price spikes caused by heavy rains and rising rice prices. This move comes amid mounting pressure on global food supplies due to Russia's withdrawal from a deal guaranteeing safe passage of Ukrainian grain, including wheat.

Last year, India had already imposed a 20% export tax on rice and restrictions on wheat and sugar shipments to discourage foreign sales. Despite the ban, Indian farmers will still be allowed to export long-grain basmati rice to benefit from international market prices.

However, concerns persist regarding the potential impact on global food prices and supplies given India's critical role in the rice export market.