Rice Export Bans and Price Caps are a Food Crisis Risk For Asia

1. Rice Export Bans and Price Caps are a Food Crisis Risk For Asia Rice Export Bans and Price Caps are a Food Crisis Risk For Asia Asian giants China and India account for more than 80% of the rice production in the world but recently India’s partial rice export ban and China’s low rice exporting capacity disrupted the Global Rice Market. Despite this, the major rice-importing nation the Philippines is capping the rice prices, surging the demand for the rice. Resulting in the global rice price soaring to a 12-year high above the $600 a metric ton. Rice is a staple for more than half the world, including 1 billion undernourished people in Africa and Asia. The world’s rice export is very low as most of the produced rice has been consumed by the nations themselves. So, a small disruption in rice export can spike global rice prices, causing concern for the rice- importing nations. The global rice production in the previous crop season was 513 million tons and the global trade for rice is only 10% of the total rice production. Whereas, the figures for wheat and soybean for the traded output were 25% and 40% respectively. Rice Export Problems Rice Export Problems The disruption in the global rice market is due to the risk of Asia’s low rice production in the upcoming season. The El Nino phenomenon is threatening the low rice production in nations like India and Myanmar. In July, India put restrictions on the export of non-premium rice to secure the rice stocks for the domestic market in the upcoming season. It’s important to note that India accounts for more than 40% of the rice exports in the global market.

2. Although the global rice stockpiles are sufficient, expect 173.8 million metric tons at the end of season 2022-23. This figure is more than double that of the 2007-08 season when the last rice price surge happened. Despite the possibility of the El Nino drought threat, global rice production in this season is all-time high but the global rice demand is increasing even at a faster rate due to immense world population growth and the decline of extreme poverty in Asia and Africa. Final Thoughts Final Thoughts In conclusion, the largest rice exporting nation India restricts its non-premium rice exports whereas the rice importing nation the Philippines caps the domestic rice prices. This decision created havoc in the global rice market, surging the global rice prices to a 12-year high. Although the world’s rice production has increased so as the demand for rice is increasing with the growing population in Asia and Africa. Governments and policymakers should focus on increasing the production of rice to keep up with the demand. Tradologie.com offers the best platform for your needs if you're a rice importer looking to buy rice in bulk or a rice exporter looking to export rice in bulk. With the help of Tradologie.com, bulk rice trade is possible for all types. Tradologie.com platform makes it possible for customers to purchase rice, wheat, and spices, among other high-quality agricultural products, at flexible prices. Tradologie.com is a digital platform that connects buyers and sellers of bulk agro commodities across the globe. With the use of technology, Tradologie.com ensures seamless transactions between agro- exporters and importers. With 70,000+ certified suppliers from more than 150 countries and 600,000+ verified buyers worldwide, Tradologie.com is expanding quickly. If you want to register as a buyer, click here, If you want to register as a seller, click here. To stay updated about the latest developments in the agro-trading sector, follow Tradologie.com on all social media platforms.