The world’s largest rice exporter imposed a new ban on one of its most popular grains and has intensified fears of inflation and shortages. The restriction on non-basmati white rice went into effect immediately after the announcement last Thursday.
Over the weekend in stores across Dallas-Fort Worth, customers cleared the shelves and waited in long lines to stockpile bags of rice.
“They really wanted to purchase ten, 12, 15 bags,” Anand Pabari said. Pabari is the president of India Bazaar, a South Asian grocer with headquarters in Plano and ten stores across the metroplex. “It was a really crazy situation.”
Non-basmati white rice makes up about 25% of India's rice exports with the U.S. listed as one of its top export destinations. According to India’s government, the ban is an effort to regulate prices and increase supply within the country.
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While the ban does not include organic non-basmati white rice, customers have left those piles nearly untouched.
“Organic is almost a 60% price difference,” Pabari said. “For regular it is $15, then you are paying almost $25 to $30 for the organic.”
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In the U.S. grocers including India Bazaar expect to see an increase in prices. And while shelves were wiped clean by customers, Pabari said there is not a shortage.
“After two or three months, the shortage will come,” Pabari said. “But for now, I think we are OK. We are working with the Indian government also to see if they can release some rice.”
Economists with the International Monetary Fund or IMF have also asked the Indian government to reconsider its export ban.
For now, Pabari said he has made larger orders of non-basmati white rice with domestic vendors.
“We have our parent company who also imports rice. It's called Grain Market, and they also have a warehouse here in Dallas,” Pabari said.
Although Pabari expects a fresh shipment of non-basmati rice this week, a limit for customers will remain.
“We don’t want our customers to be left out. So, that’s why we put a limit on rice,” Pabari said. “I really want to tell all the customers to not panic. Just buy what you need. We will have enough rice.”
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