India’s decision to ban exports of non-basmati white rice has prompted buyers to request early shipments of basmati rice, fearing that the government might also impose restrictions on basmati rice exports, as per industry officials cited by Reuters.
Atul Garg, the managing director at GRM Overseas, a major exporter of basmati rice, mentioned that buyers typically sign long-term contracts for specific monthly quantities, but now some are requesting to advance shipments initially planned for September and October to be sent in August.
In the previous year, India exported approximately 4.5 million metric tons of basmati rice, with top buyers including Saudi Arabia, Iran, Iraq, United Arab Emirates, Yemen, and the United States.
Notably, India has never banned basmati rice exports before, but in 2008, it did impose export taxes.
Exporters are assuring buyers that there are currently no plans for a ban on basmati rice exports, but the recent decisions by the government have caused some concerns among buyers.
The ban on non-basmati white rice exports from India has sparked panic buying of rice in the United States, leading to restrictions on the number of rice bags customers can purchase in many departmental stores and reports of empty shelves.
In response to the situation, some stores have put up notices limiting customers to purchasing only one rice bag per family to ensure fair distribution. However, there are concerns about hoarding, with fears that individuals may stockpile rice and attempt to sell it at higher prices through online platforms.
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