World’s Rice Glut Will Be Put To Test With El Nino’s Return

1. World’s Rice Glut Will Be Put To Test With El Nino’s Return World’s Rice Glut Will Be Put To Test With El Nino’s Return Rice is one of the most consumed agro-commodity around the world. Different cuisines can be made out of it and hence the demand for rice remains strong all-round the year. However, the Asian countries who enjoy favorable weather conditions are the primary ones responsible for satiating global rice needs. Countries namely India, Thailand and Vietnam are the leading rice exporters of the world and owing to favorable climatic conditions and soil type, they collectively export bulk rice every year. However, things might be different this time around as the United States Department of Agriculture (USDA) has announced officially the arrival of El Nino weather phenomenon. El Nino weather pattern usually brings hotter and drier conditions to the Asian subcontinent, the region that is known for production and consumption of 90% of the total global rice supply and as per history rice yield have been much lower than usual in the event of El Nino weather pattern. Present Market Conditions Present Market Conditions Currently, the global rice stocks are at record levels. The world is enjoying regular supply of bulk rice. However, that will be put to test once El Nino strikes. Last week, the United States officially announced that the world is set to witness El Nino phenomenon this year, with strong chance of it being higher than moderate.

2. Market players believe that this year will be a seller market. They don’t expect to witness a severe rice shortage but are well aware that supplies are going to be down. The USDA has predicted the rice stockpiles to drop by 5 per cent to stand at 173.5 million tonnes this season and accordingly rice importers have started ramping up purchases in recent months. Situation In Vietnam, Thailand And India Situation In Vietnam, Thailand And India Located in Asia, Vietnam is the third largest rice exporter in the world. As per figures, it has shipped more than 40% rice to the Philippines in the first four months of 2023 owing to strong global demand. Anticipations of El Nino have also helped Vietnam export bulk rice to China and Indonesia in 2023 and according to the data released by the Vietnam’s Custom Department, Vietnam’s rice exports to China surged by over 70% while that to Indonesia surged by almost 2500%. The same is the case with Thailand as well. According to the Thai Commerce Ministry, Thailand’s rice exports have grown by more than 18% in the current year. Talking of India, while the rainfall is forecasted to be normal so far, history tells us that deficient rainfall during El Nino weather phenomenon has adversely affected agricultural output and drove food prices to record levels. The Bottom Line The Bottom Line The world is awash in rice with global stockpiles close to record levels. However, that will be put to test in the event of El Nino weather phenomenon. The US has formally announced the arrival of El Nino last week and while severe rice shortages are yet not anticipated, it is still to be seen as to how the world copes up with low rice supply when El Nino strikes. If you are a Rice Exporter looking to export bulk rice or are a rice importer looking to buy rice in bulk, then Tradologie.com is the platform for you. Tradologie is a SAAS platform that facilitates bulk trade of agro-commodities from the point of enquiry to delivery, completely in a digital manner. The platform currently has over 600,000 verified buyers and 70,000+ verified suppliers in its network and is growing day by day. To register as a seller, click here. To register as a buyer, click here. To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.