NEW DELHI :India won’t grant permission to home rice exporters to take part in United Nations World Food Program (WFP) tenders, a senior official advised Mint, a transfer that dangers stoking international meals safety issues.

This is the primary time New Delhi has taken such a measure, which is but to be introduced publicly.

India’s stand is guided by its effort to make sure home meals safety and verify inflation, this official mentioned, and comes in opposition to the backdrop of WFP, the world’s largest humanitarian group, not too long ago inviting tenders for damaged rice provides to Spain, Cameroon, Togo and Algeria.

WFP offers meals reduction to populations hit by battle, catastrophe and the impression of local weather change.

“WFP has not too long ago invited tenders for the provision of damaged rice to 4 countries–Spain, Cameroon, Togo and Algeria and due to this fact, DGFT (Directorate General of Foreign Trade) has obtained representations to permit Indian rice exporters to take part within the tender course of,” the official cited above mentioned.

“Bilateral export on the government-to-government stage, of choose commodities for humanitarian functions, is already in place. After a protracted deliberation, it was determined that at current, permission to take part within the WFP tender course of might not be granted, and bilateral exports on a case-by-case foundation could also be continued contemplating the export ban in place amid India’s precedence to make sure meals safety.”

India imposed a ban on damaged rice exports in September 2022 and on non-basmati white rice in July 2023 to enhance the home provide and hold inflation in verify after patchy monsoon rains sparked worries over decrease rice output.

Mint in August reported that the WFP had sought 200,000 tonnes of rice for its humanitarian operations from India, the most important exporter of the commodity, citing “catastrophic ranges” of world meals insecurity triggered by the covid-19 pandemic and the Ukraine struggle.

Since the export ban, India has provided rice to needy nations and its key strategic companions, however on a case-by-case foundation.

Several African nations are closely depending on rice imports from India. Togo imported a considerable 88% of its rice from India final 12 months. Benin, the most important international importer of Indian damaged rice, procured 61%, whereas nearly half of Senegal’s imports of the grain originated from India.

“India’s rice export ban displays a consumer-oriented bias in its meals coverage, impacting the worldwide rice provide and costs, particularly in Asia and South Africa. Despite this, India has elevated rice exports to needy nations like Nepal and Bhutan by way of bilateral agreements,” mentioned Amarnath Tripathi, affiliate professor of economics at Jaipuria Institute of Management in Noida.

“Domestically, the ban helps control rice prices and highlights the necessity to reduce paddy cultivation due to declining water tables. A balanced approach is crucial to protect consumer and farmer interests while conserving water resources. Notably, basmati rice, accounting for nearly half of India’s exports, remains unaffected by the ban, .minimizing the global impact of the rice export ban.”

Queries despatched to the spokesperson of WFP in New Delhi, the commerce and trade, client affairs, meals and public distribution departments and exterior affairs ministries remained unanswered at press time.

Prime Minister Narendra Modi, in his Independence Day speech final 12 months, pledged to curb inflation in remarks made months forward of normal elections due in April-May this 12 months. The International Monetary Fund additionally inspired India to raise its rice export bans attributable to their international inflationary impression.

However, New Delhi mentioned these measures have been essential to make sure ample home provide and cut back native costs.

While India’s meals inflation has moderated, rice is the one product within the cereal basket that continued to weigh on the patron worth index.

In January, meals inflation, comprising practically half the general client worth basket, was 8.30%, down from 9.53% in December 2023. However, rice costs have been up 13% in January in opposition to 12.3% in December and 10.4% in January 2023.