After India’s ban on the export of non-basmati rice, Indian NRIs in the US have been gripped by panic, leading to bulk purchases of rice from grocery and departmental stores. Photos and videos showing long queues and fights for rice have surfaced, prompting stores to set limits on the quantity of rice purchases to ensure fair distribution. However, the sudden increase in demand has raised concerns over hoarding, with some speculating that rice is being stored in large quantities to be sold online at inflated prices.
Stores Set Limits on Rice Purchases to Ensure Fair Distribution
Despite the ban, basmati rice is still available in the US markets, but many South Indian residents prefer Sona Mansoori rice, categorized as non-basmati, which has been impacted by the export ban. To alleviate the concerns, Kiran Kumar Pola, Director of Deccan Grain India, assured NRIs that there is an ample supply of rice in the country, ensuring no shortage for the next six months.
Rice Prices Increase by 11.5% Over the Last Year
However, the ban has led to an 11.5% increase in rice prices over the last year, and the demand for non-basmati rice is rising by 35% annually. Every month, India supplies 6,000 tonnes of non-basmati rice to the US, with 4,000 tonnes coming from Telangana and Andhra Pradesh. While the ban was implemented to stabilize rice prices in the domestic market and ensure sufficient supply, its impact on the NRIs in the US has sparked concerns over rice availability and affordability.