Chamber says India rice ban has minimal effect on HK

Kenneth Chan Kin-nin, chairman of the Rice Merchants' Association of HK, said on Friday that India’s latest ban on rice export would have minimal effect on Hong Kong.

India announced earlier a ban on the export of white rice in an attempt to curb domestic price hikes. New Delhi imposed the ban on non-basmati white rice on July 20 to enhance domestic supply and curb inflation. This came as retail prices of rice climbed 3 percent in just one month after late and heavy monsoon rains damaged crops.

Speaking on a radio program this morning, Chan said with Hong Kong relying mainly on rice imports from Thailand and Vietnam, the latest ban would not directly impact the city’s supply and price of rice.

He believed the ban would be lifted shortly should India’s harvest return to normal this year.

Meanwhile, the president of the Federation of Restaurants and Related Trades, Simon Wong Ka-wo, a registered rice merchant, said India accounts for more than 40 percent of world rice exports, which he said a ban could cause panic buying.

Wong expected the retail prices of rice in Hong Kong may go up by the end of this month if other countries increase their import of rice from different origins.