Economic impacts of the Indian ban on non-Basmati rice exports

In July 2023, India — the world’s largest rice exporter — imposed a ban on non-Basmati rice exports. This policy resulted in significant price increases in global rice markets, with prices rising by up to 32% in key rice-exporting countries. As a consequence, rice-consuming countries, particularly those in Asia and Africa, experienced increased food expenditures, leading to an estimated annual consumer surplus loss of $315 million. Our analysis suggests that the export ban disproportionately impacts low-income consumers in countries heavily dependent on rice imports.