9 Aug,2023 Rice Export Ban Flashcards
What action did the Indian government take regarding the export of non-basmati white rice?
The Indian government announced a ban on exporting non-basmati white rice.
What is India’s position in terms of rice production and export in the world?
India is the second-largest producer of rice globally and the largest rice exporter, accounting for around 40% of world rice exports.
What are the reasons behind India’s decision to ban the export of certain rice varieties?
India imposed the ban for political reasons, to control rising domestic prices before upcoming elections, and also for strategic reasons to manage inflation and safeguard political interests.
Provide an example from history where a country used commodities as a strategic tool.
Under Public Law 480 (P.L. 480), USA President Eisenhower used surplus American grains to gain support from newly independent developing countries against communism during the Cold War.
What is the context of this article?
This article is expressing the scenario of food production volatility because of the steps taken by various countries to serve their national interest.
What is the status of India in terms of rice production and export?
India is the second-largest producer of rice in the world, after China. It has also become the largest rice exporter globally, accounting for nearly 40% of world rice exports.
What are the reasons for India imposing a ban on exporting non-basmati white rice?
The Indian government imposed a ban on exporting non-basmati white rice for two reasons:
* Political: The government is facing elections soon and needs to control the rising prices of rice domestically to ensure its support.
* Strategic: The government is using export restrictions not only for managing domestic inflation but also as a strategic tool.
What is an example of how India has used commodities as a strategic tool in the past?
In 2022, despite the wheat ban, India provided exceptions for discretionary export approvals to support neighbouring and vulnerable countries. One of the largest recipients of Indian wheat last year was Egypt, which traditionally imported 80% of its wheat requirements from Russia and Ukraine. India strategically utilized a commodity to safeguard its political interests and it is likely to adopt a similar approach for the recent rice export ban.
What is the ethical dilemma raised by India’s decision to ban rice exports?
The decision to ban rice exports raises the following ethical dilemmas:
* National sovereignty vs. global humanitarian responsibility: Does India have the right to ban exports of a food staple when it knows that this will cause hunger and suffering in other countries?
* Short-term political gain vs. long-term global stability: Is India sacrificing long-term global food security for short-term political gain?
* Ethical responsibility vs. geopolitical realities: Does India have an ethical responsibility to help feed the world, even if it means sacrificing its own geopolitical interests?
* Support for farmers vs. food security for all: Does India have a responsibility to support its farmers, even if it means exporting less rice and making food more expensive for consumers?
What ethical dilemmas arise from India’s decision to ban rice exports?
Ethical dilemmas include balancing national sovereignty and global humanitarian responsibility, short-term political gain versus long-term global stability, ethical responsibility versus geopolitical realities, and supporting farmers versus ensuring food security for all.
What is the potential impact of India’s ban on rice exports on its global image?
The ban decision is negatively affecting India’s reputation as a reliable global supplier, contradicting its slogan of “Vasudhaiva Kutumbakam” (The World Is One Family).
What alternative measures could India take instead of imposing a ban on rice exports?
Instead of a ban, India could impose a tariff or a minimum price below which shipments aren’t allowed, ensuring a minimum export price to prevent under-invoicing.
Why did India provide discretionary export approvals despite a wheat ban in 2022?
India granted exceptions for export approvals to support neighboring and vulnerable countries, strategically utilizing commodities to safeguard political interests.
How has the USA historically used commodities as a strategic tool?
Under Public Law 480, the USA used surplus American grains to gain allegiance or support against communism, such as during the Cold War and key events like the Vietnam conflict.
What message does the article convey about using a targeted export program over a free market approach?
The article suggests that a targeted export program that prioritizes critical international relationships can offer more benefits to India than a free market in cereals trade, emphasizing the strategic nature of such decisions.
