How will India's Rice Export Ban Impact Indonesia?


The Indian government stopped the export of broken rice and imposed a 20 percent export duty on several rice products on Sept 9. Sudhanshu Pandey, Secretary of India's Food and Public Distribution Department, said this policy was to ensure the availability of sufficient rice for consumption in the animal feed raw material industry and ethanol production. "This will further aid the successful implementation of the ethanol-to-fuel blending program," Pandey said.

Nomura research analyst said India's move would impact rice importing countries, including Indonesia. India is a supplier of rice to 150 countries in the world. "The impact of India's rice export ban will be felt directly for countries importing from India, and indirectly for all rice importers because it has an impact on global rice prices," the research excerpt stated on Tuesday.

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