India introduced in July a ban on exports of non-basmati white rice (Representational)
Paris, France:
International rice costs reached a 15-year excessive in August after high exporter India banned some abroad gross sales of the grain, the Meals and Agriculture Group mentioned Friday.
Whereas world meals costs eased in August, these of rice rose 9.eight % in comparison with the earlier month, “reflecting commerce disruptions within the aftermath of a ban on Indica white rice exports by India”, the FAO mentioned in a month-to-month report.
“Uncertainty concerning the ban’s length and considerations over export restrictions brought about supply-chain actors to carry on to shares, re-negotiate contracts or cease making worth affords, thereby limiting most commerce to small volumes and beforehand concluded gross sales,” the UN company mentioned.
Rice is a significant world meals staple and costs on worldwide markets have soared within the wake of the Covid pandemic, the battle in Ukraine and the affect of the El Nino climate phenomenon on manufacturing ranges.
India introduced in July a ban on exports of non-basmati white rice, which account for round 1 / 4 of its complete.
The patron affairs and meals ministry mentioned on the time that the transfer would “guarantee ample availability” and “allay the rise in costs within the home market”.
India accounts for greater than 40 % of all world rice shipments.
The ban was anticipated to hit African nations, Turkey, Syria and Pakistan, all of which have been already battling excessive inflation, knowledge analytics agency Gro Intelligence warned in a word in July.
The Philippines, one of many world’s high importers of rice, reached a five-year settlement with Vietnam on Thursday to purchase rice.
El Nino impact
World rice shares are forecast to achieve an all-time excessive of 198.1 million tonnes, with India and China holding practically three quarter of this quantity like in earlier seasons, in accordance with the FAO.
This complete represents round 38 % of rice consumption forecast over the identical interval.
However combination rice reserves held by the remainder of the world are anticipated to finish the 12 months with a second successive contraction, it added.
El Nino may even have a unfavourable impact on the subsequent harvests.
The turmoil within the rice market comes as world meals costs have been progressively easing from a peak final 12 months after battle broke out between main grain producers Russia and Ukraine.
The FAO’s world meals worth index, which tracks month-to-month adjustments in worldwide costs of a basket of meals commodities, averaged 121.four factors in August, down 2.1 % from July.
The index was 24 % beneath the summit it reached in March 2022.
Costs of cereal, meat, dairy and vegetable oils all fell in August.
Sugar costs, nevertheless, rose by 1.three % as a consequence of “heightened considerations over the affect of the El Nino phenomenon on sugarcane crops, together with below-average rains in August and protracted dry climate circumstances in Thailand”.
‘Modest’ restoration
International meals costs had barely rebounded in July when Russia pulled out of a deal brokered by the UN and Turkey that had enabled Ukraine to ship grains through the Black Sea.
The FAO mentioned on Friday it had lowered its forecast for world commerce in cereals in 2023 and 2024 to 466 million tonnes — a 1.7 % drop from the earlier advertising season.
“Traded volumes of wheat and maize are all predicted to say no, as a consequence of a mixture of causes, together with falling exports by Ukraine as a consequence of commerce disruptions related to the continued battle,” it mentioned.
“FAO has additionally lowered its forecast for world commerce in rice from the July determine contemplating the stepped-up export restrictions by India,” the FAO added.
An anticipated restoration of the rice commerce in 2024 can be “modest” if the India restrictions are protracted and El Nino disrupts manufacturing in different Asian exporters, the FAO added.
(Aside from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)
