The price of rice could soon explode we explain why

The price of rice could soon explode: we explain why experts fear a market boost

On Thursday 20th July 2023, India announced it would suspend exports of non-basmati white rice. The country accounts for 40% of global exports, prompting fears of price hikes among some experts.

Rice market tensions. While leading export country With the proliferation of non-basmati white rice reducing its presence in the global market, some experts fear a price hike, notes TF1 Info.

This increase could quickly find its way onto supermarket shelves, but it could also “exacerbate food insecurity in other countries that depend on these imports,” say Gro Intelligence experts in a press release.

India is reducing its exports

In the wake of restrictions on wheat and wheat flour, India will stop exporting non-Basmati white rice, news that could impact the global market. It is the purpose of this decision curbing inflation in india, which is primarily confronted with a significant increase in food prices.

Gro Intelligence fears India will extend these restrictions to other commodities to deal with inflation. Due to the El Niño phenomenon, the price of rice is currently higher than it has been in the last two years. This climatic trend leads to a global warming of temperatures and reduces the rainfall vital to the rice fields.

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What consequences?

Gro Intelligence fears so food insecurity does not increase in countries importing large quantities of Indian rice. This is particularly the case in China, Bangladesh, Benin and even Nepal. As India is one of the cheapest rice suppliers in the world, the impact of this decision is likely to be felt in the global market for this commodity.

In addition, world market rice prices could soar beyond the difficulties faced by the countries most dependent on Indian exports. Consequently, the purchase prices in Supermarket are likely to swell.