On November 20th, foreign media reported that as the world’s top rice exporter, India may continue to restrict rice export sales next year. This decision may bring rice prices close to their highest level since the 2008 food crisis.
In the past decade, India has accounted for nearly 40% of global rice exports, but under the leadership of Indian Prime Minister Narendra Modi, the country has been tightening exports to control domestic price increases and protect Indian consumers.
Sonal Varma, Chief Economist of Nomura Holdings India and Asia, pointed out that as long as domestic rice prices face upward pressure, export restrictions will continue. Even after the upcoming general election, if domestic rice prices do not stabilize, these measures may still be extended.
To curb exports, India has taken measures such as export tariffs, minimum prices, and restrictions on certain rice varieties. This led to international rice prices soaring to their highest level in 15 years in August, causing importing countries to hesitate. According to the Food and Agriculture Organization of the United Nations, the price of rice in October was still 24% higher than the same period last year.
Krishna Rao, Chairman of the Indian Rice Exporters Association, stated that in order to ensure sufficient domestic supply and control price increases, the government is likely to maintain export restrictions until the upcoming vote.
The El Ni ñ o phenomenon usually has adverse effects on crops in Asia, and the arrival of the El Ni ñ o phenomenon this year may further tighten the global rice market, which has also raised concerns. Thailand, as the second largest exporter of rice, is expected to experience a 6% decrease in rice production in 2023/24 due to dry weather.
From AgroPages
Post time: Nov-24-2023