IMF Urges India to Remove Rice Export Restrictions Amid Rising Inflation Concerns

New Delhi, July 26, 2023: The International Monetary Fund (IMF) has called on India to reconsider its ban on the export of non-basmati white rice, citing potential impact on global inflation. The ban, which was implemented on July 20, was aimed at bolstering domestic supply and controlling retail prices during the festive season. However, the IMF argues that such restrictions can exacerbate volatility in food prices worldwide and may lead to retaliatory measures.

Dr. JS Titiyal, Chief of RP Centre for Ophthalmic Sciences at AIIMS, also highlighted the rising cases of conjunctivitis in Delhi-NCR due to heavy monsoon rains. With about 100 new cases reported daily, health authorities urge the public to follow hygiene measures to prevent transmission.

The IMF’s latest economic update projected India’s growth rate for fiscal year 2024 at 6.1%, slightly higher than the 5.9% estimated earlier. While India’s economy remains robust, the IMF emphasizes the importance of easing inflation to allow monetary policy flexibility. It suggests that export restrictions should be phased out globally to maintain the declining inflation trend.

IMF officials also praised India’s digital public infrastructure, calling it world-class and lauded the country’s efforts to share its experience with other G20 members. The IMF expects India’s growth to continue at a rate above 6% in the medium term, making it a significant contributor to the world economy.

As India strives to maximize its economic potential, the IMF emphasizes the need for reforms to enhance female labor force participation and provide better training opportunities for the youth.

Inflation is expected to be at 4.9% this year and 4.5% next year, attributed partly to the 250 basis point increase in interest rates since last year and the decline in global food and energy prices.

The IMF’s call to remove export restrictions on rice comes as India’s economic growth remains strong and contributes significantly to global growth.