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India's export bans rattle world food market: US
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newsbyte on 10 June, 2008 09:03:50
 
In a severe criticism of India's handling of global food crisis, the US has said
that 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.
Padilla said that while export bans are designed to increase short-term food
security, (by) imposing the restrictions these policies make the situation
worse.
The US Under-Secretary said that 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."
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.