India's export bans rattle world food market: US

Agencies

Posted: Tuesday, Jun 10, 2008 at 1549 hrs IST
Updated: Tuesday, Jun 10, 2008 at 1549 hrs IST


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Washington, June 10: : 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.

"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 in Washington on Monday.

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.

India is the second largest rice producer in the world, the third largest wheat producer, and the seventh largest corn producer.

Besides the US, there are several other countries which have asked India to lift ban on foodgrain export. Food and Agriculture Minister Sharad Pawar had last week said that he does not want to continue with the export restrictions once domestic prices ease on better supply.

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