India’s Lifting of Rice Export Ban Helped Cool Global Food Prices, Says WTO

In a major boost to global food markets, the World Trade Organization (WTO) has credited India’s move to lift its rice export ban as a key factor in stabilizing worldwide food prices. The decision has brought relief to countries relying on Indian rice, particularly in Africa and the Middle East.

Why India Initially Banned Rice Exports

Last year, India—the world’s top rice exporter—restricted shipments of non-basmati white rice to curb domestic inflation and ensure food security amid unpredictable monsoons. The ban covered about 25% of India’s rice exports, causing global prices to spike to a 12-year high.

The Indian government justified the restrictions as necessary for its 1.4 billion people, but the move led to shortages in import-dependent regions, worsening food insecurity.

WTO Praises India’s Policy Reversal

The WTO’s latest report highlights that India’s relaxation of rice export curbs helped lower global food inflation. “The resumption of Indian rice exports eased supply pressures and stabilized prices,” the report noted.

Global rice markets had been strained due to climate disruptions in Thailand and Vietnam, along with geopolitical trade hurdles. India’s return to exports helped restore balance and prevent further volatility.

Global Market Impact

India supplies rice to over 40 countries, many in Africa and Southeast Asia, where it’s a dietary staple. Nations like Benin, Senegal, and Nigeria faced severe shortages during the ban.

Since restrictions were lifted, global rice prices dropped by 8%, according to the FAO—the first major decline in months.

Domestic Concerns & Future Trade Policies

While the export restart benefits global markets, India remains cautious, prioritizing domestic food security. Future policies will depend on monsoon performance and stock levels.

Indian farmers and traders, who suffered from local price drops due to the ban, now see renewed income opportunities. Experts predict India’s role in global food security will expand, but the WTO urges stable, predictable trade policies to avoid future disruptions.

Conclusion: A Step Toward Global Food Stability

India’s decision highlights the balance between national food security and global trade responsibilities. By easing export curbs, India stabilized prices worldwide—a move the WTO calls crucial for sustainable food trade.

As climate and geopolitical risks persist, coordinated policies are essential. India’s action sets a positive example for managing food supply chains in an interconnected world.

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