• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Food and drink

Indians in America panic-buy after steep export cut: ‘I might have to substitute Basmati rice but it doesn’t taste that good, especially with South Indian dishes’

By
Bobby Caina Calvan
Bobby Caina Calvan
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Bobby Caina Calvan
Bobby Caina Calvan
and
The Associated Press
The Associated Press
Down Arrow Button Icon
July 29, 2023, 6:07 PM ET
Woman in grocery store
Export cuts in India have a long ripple effect.Getty Images

Chatter on one of Prabha Rao’s WhatsApp groups exploded last week when India announced that it was severely curtailing some rice exports to the rest of the world, triggering worry among the Indian diaspora in the United States that access to a food staple from home might soon be cut off.

Recommended Video

As in any crisis situation — think bottled water and toilet paper— some rushed to supermarkets to stock up, stacking carts with bags and bags of rice. In some places, lines formed outside some stores as panic buying ensued.

But Rao, who lives near Syracuse, New York, was reassured when the proprietor of her Indian market sent out an email to customers to let them know there was no need to worry: There was an ample supply of rice.

At least for now.

An earlier than expected El Niño brought drier, warmer weather in some parts of Asia and is expected to harm rice production. But in some parts of India, where the monsoon season was especially brutal, flooding destroyed some crops, adding to production woes and rising prices.

Hoping to stave off inflationary pressures on a diet staple, the Indian government earlier this month imposed export bans on non-Basmati white rice varieties, prompting hoarding in some parts of the world.

The move was taken “to ensure adequate availability” and “to allay the rise in prices in the domestic market,” India’s Ministry of Consumer Affairs, Food & Public Distribution announced July 20. Over the past year, prices have increased by more than 11%, and by 3% over the past month, the government said.

Non-Basmati white rice constitutes about a fourth of the rice exported by India.

“On WhatsApp, I got a lot of messages saying that rice was not going to be available. I think there was a lot of confusion in the beginning because, as you know, rice is very important for us,” Rao said.

“When we first heard the news, there was just mild confusion and people started panic buying because they thought that it may not be available,” she said.

There are scores of different varieties of rice, with people having their preference depending on taste and texture. India’s export ban does not apply to Basmati rice, a long-grain variety that is more aromatic.

The ban applies to short-grain rice that is starchier and has a relatively neutral flavor — which Rao says is preferable in some dishes or favored in specific regions of India, especially in southern areas of the country.

At Little India, a grocery store in New York City’s Curry Hill neighborhood in Manhattan, there was no shortage of Basmati rice and other varieties.

That wasn’t the case at other Indian groceries.

On its Facebook page, India Bazaar, an Indian grocery chain in the Dallas-Fort Worth area, told customers not to panic. “We are working hard to meet all our shoppers’ demands,” the post said.

Customers cleared shelves and waited in long lines to stockpile bags of rice, reported NBC Dallas affiliate KXAS.

“They really wanted to purchase ten, 12, 15 bags,” India Bazaar’s president, Anand Pabari, told the station. “It was a really crazy situation.”

India’s move came days after Russia backed out of a deal to allow Ukrainian wheat safe passage through the Black Sea, prompting warnings that the action could lead to surging prices.

Some economists say the ban might further hurt food supplies around the world, and some governments have urged the Indian government to reconsider the export ban.

At least in the United States, the supply of imported rice from India may not yet be a problem — despite the panic buying — but a long-term ban would certainly deplete that stock.

Roa says she and others will just have to adapt by purchasing rice grown in the United States or imported from other countries.

“I might have to substitute Basmati rice,” she said, “but it doesn’t taste that good, especially with South Indian dishes.”

A U.S. resident for three decades, Rao said she is accustomed to improvising.

“When we first came here, there was not even that much rice from India,” she said. “So I’ve learned to substitute, and I’m fine with the other brands that we get.”

Fortune Brainstorm AI returns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
About the Authors
By Bobby Caina Calvan
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in

business
C-Suitechief executive officer (CEO)
Inside the Fortune 500 CEO pressure cooker: surviving is harder than ever and requires an ‘odd combination’ of traits
By Nick LichtenbergDecember 7, 2025
15 minutes ago
Alex Amouyel is the President and CEO of Newman’s Own Foundation
Commentaryphilanthropy
Following in Paul Newman and Yvon Chouinard’s footsteps: There are more ways for leaders to give it away in ‘the Great Boomer Fire Sale’ than ever
By Alex AmouyelDecember 7, 2025
60 minutes ago
CryptoCryptocurrency
So much of crypto is not even real—but that’s starting to change
By Pete Najarian and Joe BruzzesiDecember 7, 2025
1 hour ago
Hank Green sipping tea
SuccessPersonal Finance
Millionaire YouTuber Hank Green tells Gen Z to rethink their Tesla bets—and shares the portfolio changes he’s making to avoid AI-bubble fallout
By Preston ForeDecember 7, 2025
2 hours ago
MagazineWarren Buffett
Warren Buffett: Business titan and cover star
By Indrani SenDecember 7, 2025
3 hours ago
Tamera Fenske, chief supply chain officer at Kimberly-Clark
SuccessCareers
Kimberly-Clark exec is one of 76 women in the Fortune 500 with her title—she says bosses used to compare her to their daughters when she got promoted
By Emma BurleighDecember 7, 2025
4 hours ago

Most Popular

placeholder alt text
AI
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China 'they can build a hospital in a weekend'
By Nino PaoliDecember 6, 2025
20 hours ago
placeholder alt text
Real Estate
The 'Great Housing Reset' is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts
By Nino PaoliDecember 6, 2025
1 day ago
placeholder alt text
Economy
The most likely solution to the U.S. debt crisis is severe austerity triggered by a fiscal calamity, former White House economic adviser says
By Jason MaDecember 6, 2025
16 hours ago
placeholder alt text
Big Tech
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
2 days ago
placeholder alt text
Asia
Despite their ‘no limits’ friendship, Russia is paying a nearly 90% markup on sanctioned goods from China—compared with 9% from other countries
By Jason MaNovember 29, 2025
8 days ago
placeholder alt text
Success
Nvidia CEO Jensen Huang admits he works 7 days a week, including holidays, in a constant 'state of anxiety' out of fear of going bankrupt
By Jessica CoacciDecember 4, 2025
3 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.