![]() ![]() "More orders will flow for Thai and Vietnamese rice," he said. The decision will impact trade flows as India's white rice prices of the variety are about $60-$70 per tonne cheaper than Thailand's, said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. In India, 5% broken white rice prices were quoted around $348 a tonne. Five percent broken rice in Myanmar was quoted around $390-$395 a tonne, free on board, before India's decision on export restrictions. "Myanmar prices should go up by $50 a tonne while suppliers in Thailand and Vietnam will be quoting higher prices," said one Singapore-based trader. ![]() “The government’s move will boost global rice prices,” Rao said, estimating that export prices of white rice may exceed $400 a ton from as much as $350 currently on a free-on-board basis. With India’s latest move, that may be about to change. In contrast to the surge in wheat and corn prices after Russia’s invasion of Ukraine, rice has been subdued due to ample stockpiles, helping to ward off a bigger food crisis. The South Asian nation has already curbed wheat and sugar exports, adding to a spate of food protectionism that’s exacerbated chaos in global food markets brought on by the war in Ukraine. From April to June, exports of the cheap commodity amounted to 1.4 million tons or about a third of non-basmati rice exports. In the last fiscal year to March, India exported about 3.8 million tons of broken rice globally, accounting for about a fifth of its total non-basmati rice exports. World impact India exports rice to more than 150 countries, and any reduction in its shipments would increase upward pressure on food prices, which are already rising because of drought, heat-waves and Russia's invasion of Ukraine. It accounts for almost 20% of India’s shipments abroad. Top buyers include China, which uses it for livestock feed, and some African countries that import it for food. Prices have jumped this year on increased export demand. Broken rice, which is banned for overseas sales, is mainly used for animal feed. Rice is a staple food for about half of the world’s population, with Asia producing and consuming about 90% of global supply. ![]() The moves by India, which accounts for 40% of the global rice trade, will put further pressure on countries that are struggling with worsening hunger and soaring food inflation. The curbs apply to roughly 60% of India’s overall rice exports, according to Bloomberg calculations. The government has imposed a 20% duty on shipments of white and brown rice too. Earlier this year, similar restrictions were imposed on wheat after domestic prices surged when large quantities were committed for exports and the maturing Rabi crop was damaged due to scorching heat in March 2022. The goverment curbs came after months of speculation that the government might do so to cool domestic food inflation. Currently, several countries are suffering from a worsening food crisis or inflation, and this move by India will only add to this pressure. The sudden halt in the overseas shipment of rice is expected to lift world prices of the staple and trigger a rally in rival wheat and corn markets, deepening concerns over food inflation. The new curbs came into effect from September 9. NEW DELHI: Barring two premium varieties of rice- parboiled and Basmati rice- India has curbed the export of all other kinds of rice and imposed a 20% duty on exports of various grades of rice as the world's biggest exporter of the grain attempts to augment supplies and cool domestic prices after below-average monsoon rainfall curtailed planting. ![]()
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