Pierre-Olivier Gourinchas, IMF’s Chief Economist, cautioned that such restrictions could exacerbate food price volatility worldwide and lead to retaliatory measures

The International Monetary Fund (IMF) has recommended that India lift restrictions on the export of a particular type of rice, as these restrictions could contribute to global inflation. To keep domestic rice supplies stable during the festive season, the Indian government banned the export of non-basmati white rice on July 20.

This type of rice accounts for about 25 per cent of India’s total rice exports. However, there will be no change in export policy for par-boiled non-basmati rice and basmati rice, which make up the bulk of India’s rice exports. Pierre-Olivier Gourinchas, IMF’s Chief Economist, cautioned that such restrictions could exacerbate food price volatility worldwide and lead to retaliatory measures.

India’s non-basmati white rice exports totalled $4.2 million in 2022-23, with major destinations including the US, Thailand, Italy, Spain, and Sri Lanka.

The IMF has projected India’s growth rate for fiscal year 2024 to be 6.1 per cent, up slightly from its previous estimate of 5.9 per cent in April. The IMF has also praised India’s world-class digital public infrastructure, which is driving efficiency gains for businesses. The Indian economy has been robust, and the IMF has called for reforms to increase female labour force participation and training opportunities for youth. Despite the challenges, India’s growth rate is expected to remain above average for the region, with inflation projected to be under control.