Indian Trade Restrictions Forecasted to Slash Exports by $4 Billion; Red Sea Incidents Pose Ongoing Risk-Source

Ira Singh
Khabar khabaron Ki,24 Dec’23

India’s implementation of trade restrictions(on wheat rice and sugar), poised to significantly impact the nation’s exports, potentially resulting in a staggering $4 billion reduction,source privy to the matter reportedly stated ,adding that the Red Sea attacks may also hit basmati rice shipments.

The world’s second-largest producer of wheat, rice and sugar, India has restricted exports of these commodities to rein in rising domestic prices.To cope,India could use an African route,but ongoing attacks might lift rice prices by 15% to 20%.The alternate route may also affect India’s exports of the long-grain rice to Egypt and Europe, official reportedly stated.

However, India expects growth in exports of other farm commodities to offset the export deficit this year, said Rajesh Agarwal, an additional secretary in the trade ministry.

“If we remove agricultural commodities whose exports are controlled, like wheat and rice, exports are growing by over 4%,” Agarwal reportedly said.

“So, despite the shortfall of about $4 billion to $5 billion that we face because of restrictions on sugar, wheat, rice, we should be able to meet last year’s export levels,” he said.