It was a time when inflation was hovering around 13% and govt of india took a decision to ban export of rice and all essential commodity to control the rising inflation rate.
India being a second largest producer of rice in the world, started storing its rice produce for future use. China also decided to ban export of rice at the same point of time to control the inflation number.
As the decisions of these two countries have started affecting the equilibrium of demand and supply in the international market, and which resulted in a hike of around 60% to 70% in the price of rice.
Along with the international market we started feeling the heat of soaring price of rice in India. In the beginning, Govt Of India has taken a measure of banning export of rice to curb the inflation, but today rice price has gone up by almost 60% in Indian market. And inflation figure is hovering around 5.5%, which is termed to be under control and not to worry about the inflation.
How these strategies are made? And where is the relation between rice & inflation? If at all the weight given to rice in the inflation basket is less then why such a big measure has been made to ban export of rice?
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