Kenya is one of four African nations facing high rice prices as a result of India’s introduction of a Minimum Export Price (MEP) on Sunday.
In order to crack down on dealers who were exporting regular rice branded as Basmati, a premium variety, the Indian government established the cap at Ksh171,000 (USD 1,200) per tonne.
“The MEP will help authorities ensure that non-Basmati rice is not exported as Basmati rice,” India explained its rationale.
India provided an explanation for its decision, claiming that certain dealers began packaging their rice as basmati to get around the ban on non-basmati white rice exports that went into effect in July of this year.
Following the Asian nation’s prohibition on all non-Basmati types, which make up 80% of its total rice shipments, Kenya and other nations that profit from imported Indian rice began noting price spikes.
Only 20% of its exports are of the high-end, fragrant Basmati rice because of its high cost; the majority of this variety is sent to Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the US.