India’s export ban rattles food market

In a severe criticism of India’s handling of global food crisis, the US has said the export bans by New Delhi will harm its south Asian neighbours and drive up prices rattling the international markets, reports PTI. “Indian government’s decision to impose certain export bans on non-Basmati rice and edible oils has rattled international market. “We can only adequately address this crisis if we discourage continued use of export controls that will harm India’s neighbours and drive up world food prices,” US Under Secretary of Commerce for International Trade Christopher A Padilla said here yesterday. He said while export bans are designed to increase short-term food security, (by) imposing the restrictions these policies make the situation worse. He said export restrictions take food off the global market, drive prices higher, and discourage farmers from responding to market forces and investing in future production. As two of the world’s largest producer of agricultural goods, the US and India should refrain from the use of export quotas, “which will only exacerbate food shortages and inflate prices,” Padilla said, adding “export quotas don’t work. In fact, they make things worse.” He said India can shoulder international responsibilities in dealing with the global food crisis. Source: Assam Tribune