Threat of rice ban from India is no cause for panic in SA - economists

Although India, the world's biggest rice exporter, is considering banning rice exports to curb inflation, there is not yet cause for panic that prices will rocket in SA in the short term, say economists.

But the situation still needs to be monitored, they warn, because if a ban persists it could result in global panic buying, resulting in a spike in prices globally.

This follows a report by Bloomberg on Thursday that the country was considering the export ban of most rice varieties, saying the move may send already lofty global prices of the food staple higher as the disruptive El Niño weather pattern returns. In India, El Niño has previously disrupted the monsoon rainfall much of the country's agriculture relies upon.