Ban on Non-Basmati Rice

Latest Context:

Recently, WTO (World Trade Organization) members raised questions about India's ban on exporting non-basmati white rice.

More in news 

• WTO members, including the US, Canada, Australia, and Japan, are questioning India's ban on exporting non-basmati white rice.
• This ban, imposed in July, aims to control rising domestic rice prices. It has raised concerns at the WTO because India plays a significant role in global rice trade.

Why India Banned Rice Exports?

India's government aims to curb the price increase of this rice variety within the country. The prices went up because India exported more of this rice between April and June of one year compared to the previous year. The increase in exports occurred due to high international prices, El Nino weather patterns, and challenging conditions in other rice-producing countries.

Additionally, during a specific farming season, India produced significantly less rice than in the previous season.

India's Role in Rice Exports:

• India is a major player in the global rice trade, contributing a considerable portion.
• Most of India's rice exports consist of parboiled rice (It is a type of rice that has been partially boiled in the husk, which is the outer layer of the rice grain) and basmati rice, which make up a significant part of the country's total rice exports.
• Non-basmati rice accounts for a smaller share, especially during a particular period.

India's Rice Production:

• India is the second-largest global rice producer, following China.

Conclusion:

In summary, India's decision to restrict non-basmati rice exports has sparked discussions at the WTO, with various countries expressing concerns about its impact on global rice trade.

Question: Why did India impose a ban on the export of non-basmati white rice, leading to questions from WTO members?

A) To increase domestic rice production

B) To promote basmati rice exports

C) To control rising domestic rice prices

D) To comply with WTO regulations

Correct Answer: C) To control rising domestic rice prices

Additional Information:

• The World Trade Organization (WTO) is an international organization that deals with global trade rules between nations.
• It was established to ensure that trade flows as smoothly, predictably, and freely as possible. The WTO helps resolve trade disputes, negotiates trade agreements, and sets rules for international trade.
• Its primary goal is to promote fair and open trade practices worldwide.

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