Following India’s recent ban on non-Basmati white rice exports, the United States has witnessed a surge in panic buying, hoarding, and price gouging. The ban, which was announced last week, has had a significant impact on the global food market, considering India’s prominent role as a major rice exporter.
Aruna, a resident of Washington, expressed the shared anxiety among many in the Indian diaspora. She recounted her experience of searching for Sona Massori rice in multiple stores for hours, finally finding it at an exorbitant price, three times its usual cost.
The ban news has created a frenzy among Non-Resident Indians (NRIs) who are now rushing to secure their supply of non-Basmati white rice, an essential ingredient in Indian cuisine. Social media videos showcased people scrambling to get the last remaining rice bags from large stores.
The situation has drawn parallels to the baby formula shortage in the US post the COVID-19 pandemic and the Ukraine war.
While India’s export ban aims to ensure ample rice availability and lower prices for its domestic consumers, its impact is being felt far and wide, especially in the US where South Asian grocery stores are facing unprecedented demand.
At Sapna Foods, a wholesale seller in Maryland, proprietor Tarun Sardana reported a significant surge in demand, particularly for Sona Massori rice. The demand escalated over the weekend, with people seeking to procure as much South Indian rice as possible from warehouses like theirs.
Even though the export ban does not include premium-grade Basmati rice, consumers are buying it in bulk as a precautionary measure.
With panic-buying on the rise, prices have soared, and wholesalers and rice companies are adjusting their prices due to the overwhelming demand, resulting in price gouging. Mr. Sardana revealed that prices have unfortunately risen by about 100 percent, double the usual cost.
