India’s rice curbs push prices higher, fuel food inflation concerns

A woman walks through a paddy field with a basket in the town of Tral, southern Kashmir, on September 24, 2020. REUTERS/Danish Ismail TPX IMAGES OF THE DAY

SINGAPORE (Reuters) – India’s decision to curb rice exports has pushed up global prices for its staple food, sending competing wheat and corn markets soaring and fueling fears of food inflation, the report said. is expected.

Rice prices in major exporters India, Thailand, Vietnam and Myanmar are set to rise, traders and analysts say, hurting food importers already struggling with high costs due to bad weather and war between Russia and Ukraine. is giving

India on Thursday banned the export of broken rice and imposed a 20% tariff on exports of various grades of rice.Read more

“Food security will be under considerable stress in many countries,” said Finn Siebel, agribusiness economist at National Australia Bank. “Global fundamentals could rise further across the grain complex.”

Wheat prices in Chicago rose on Friday, poised for a third straight week of gains as talks about moves in India and Russia’s restrictions on grain shipments to Ukraine supported the market.

“This is an inflationary move in food prices,” said Ole Howe, director of advisory services at Sydney agricultural broker Icon Commodities. “This could cause wheat and corn prices to rise.”

India accounts for over 40% of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar in the global market.

“Myanmar prices will rise by $50 a ton while Thai and Vietnamese suppliers offer higher prices,” said one trader in Singapore.

Prior to India’s decision to restrict exports, 5% of Myanmar’s broken rice was priced at around $390-395 per ton with no carry-on fees. In India, 5% of the price of broken white rice was around $348 per ton.

Chookiat Ophaswongse, honorary chairman of the Thai Rice Exporters Association, told Reuters the decision will affect trade flows as white rice prices in India are around $60-70 a ton cheaper than in Thailand.

“There will be more orders for Thai and Vietnamese rice,” he said. “We have to wait and see how long this policy from India will last.

Top buyers China, Philippines suffer

The world’s largest rice importers, China and the Philippines, are likely to be hit immediately by rising rice prices.

China, the biggest importer of Indian broken rice for feed, is expected to shift to corn, traders said.

Shanghai JC Intelligence analyst Rosa Wang said, “We expect the ban to reduce imports…China’s new corn will be on the market soon, and there will be a large amount of other grain imports.” said.

“In fact, there is already news that the Thai-Vietnamese alliance is planning to raise export prices. We are analyzing the impact of these possible moves,” said the Philippine Department of Agriculture policy. said Mercedita Sombilla, undersecretary for planning and regulation. she told Reuters.

Thailand and Vietnam have agreed to cooperate on raising prices. The move is aimed at increasing its influence in the global market and boosting farmers’ incomes.

Reported by Naveen Thukral. Additional reporting by Chayut Setboonsarng, Bangkok, Khanh Vu, Hanoi, Dominique Patton, Beijing, and Enrico Dela Cruz, Manila.Edited by Kim Coghill

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