Experts say if left unchecked Malaysia could feel pinch of India's rice ban within weeks By R. Loheswaribi Sunday, 27 Aug 2023

Malay Mail : KUALA LUMPUR, Aug 27 — The clock is ticking for Malaysia as it braces for the possible impact of India’s non-basmati rice export ban, and if left unchecked, experts believe Malaysia’s local market could feel the pinch within weeks.

Philippines, Malaysia and Vietnam are the biggest importers of rice from India and would now have to find other avenues for supply or rely on different types of rice varieties.

Economist Nur Ameera A. Jaz from the Centre for Foundation Studies in Science at University Malaya felt Malaysia could hold out for another two to three months based on existing stockpiles of rice. However a rise in price is imminent.

“Padiberas Nasional Bhd’s (Bernas) is supposed to maintain 290,000 metric tonnes of rice stockpiled. Thus we might not experience any repercussions within the two to three-month period and appear to be well positioned in this regard,” she told Malay Mail.

“The pace of discovering fresh rice sources and the market’s response also contribute. Therefore, we could anticipate feeling the effects several weeks to a few months after the ban takes effect.”

India is responsible for 40 per cent of the world’s rice exports. On July 20, India’s government announced that it would stop exporting non-basmati white rice, effective immediately. The move was designed to help lower rice prices and secure availability in India.

Exports of parboiled rice, which has been partially boiled; and basmati rice, are still allowed. This sent prices soaring as experts predicted the amount of banned items to be about 15 per cent.

Ameera suggested an additional lifeline had also come in the form of Thailand’s recent offer to supply rice, providing a temporary buffer. However, she said that the ban on non-basmati rice could cause disruptions in the market.

“Malaysia imports rice from various countries, including India, Pakistan, Vietnam, and Thailand. While India’s share is significant, Malaysia’s reliance on multiple sources acts as a safeguard against drastic changes.

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