Rice export ban benefits Thailand

On 20th July, the Indian government announced a ban on export of non-Basmati rice. The move was intended to tackle the price rise plaguing the country. It also tried to ensure higher availability of rice in India. The international markets had repercussions as a result of this move. Experts argued that this would accelerate food insecurity in other countries and lead to rise in prices. 

It is being speculated that this a temporary move in place due to the issues in the supply chain which when resolved would lead to the revocation of the ban. 

Thailand seems to have benefited from this crisis. Thailand has exported 4.8 million metric tonnes of rice in the last 7 months. In the past 2 months alone however, 1.5 million metric tonnes were exported. This is a 13 percent increase. Even at the present rate, the export is estimated to improve by 9 percent from what it had achieved last year. The Minister of Commerce of Thailand, Jurin Laksanawisit has assured that the domestic markets have been affected by this change either in terms of price or supply. Vietnam and Thailand are in the process of negotiating for a new price range for the month of August in light of recent developments.