Rice Export Ban

Context: 

This article is expressing the scenario of food production volatility because of the steps taken by various countries to serve their national interest. 

• Last month, the Indian government announced a ban on exporting non-basmati white rice.
• Earlier Russia decided to junk the Black Sea grain deal and now India’s ban on exporting certain varieties of rice is further exacerbating the situation.

Status of India:

• Production: India is the second-largest producer of rice in the world, after China.
• Export: India has become the largest rice exporter globally, accounting for nearly 40% of world rice exports.

Reasons for Imposing Ban by India:

• Political Reasons: As elections are about to come, the government has to control the rising prices domestically to ensure their support.
• Strategic Reasons: The government is using export restrictions not only for managing domestic inflation but also as a strategic tool.
  • In 2022, despite the wheat ban, India provided exceptions for discretionary export approvals to support neighboring and vulnerable countries.
  • One of the largest recipients of Indian wheat last year was Egypt, which traditionally imported 80% of its wheat requirements from Russia and Ukraine. 
  • India strategically utilized a commodity to safeguard its political interests and it is likely to adopt a similar approach for the recent rice export ban.

Ban, A Strategic Weapon:

• This is not the first time to use commodities as a strategic tool. 
• Example: Under Public Law 480 (P.L. 480), USA President Eisenhower aimed to use surplus American grains in aid of newly independent developing countries, in the process seeking to gain their allegiance or support against communism. 
  • The US government adopted a ship-to-mouth approach in P.L.480 supplies, forcing support on key Cold War flashpoints like Vietnam. 
  • In one instance, in 1966, ships were stopped for three days. 
• In short, this has long been a fair game. A targeted export programme that prioritizes our most critical international relationships has far more to offer India than a free market in cereals trade. 

Raising Concerns:

• In this scenario, the following ethical dilemmas are the questions of the taken decision:
  • National Sovereignty vs. Global Humanitarian Responsibility
  • Short-Term Political Gain vs. Long-Term Global Stability
  • Ethical Responsibility vs. Geopolitical Realities
  • Support for Farmers vs. Food Security for All

Conclusion: 

• While India gave a slogan of “Vasudhaiva Kutumbakam” (means “The World Is One Family”), the ban decision is deteriorating its image as a reliable global supplier. 
• Building markets takes time and effort, which can be undone by just the stroke of a pen. 
• Rather than ban, the right way is to impose a tariff or a minimum price below which shipments aren’t permitted. 
• A minimum export price can be announced to prevent any under-invoicing. 

News Source: Times of India