India: rice exports banned. There will be price implications
India has banned exports of non-Basmati white rice with immediate effect, the government said on Thursday, after the late onset of the seasonal monsoon rains damaged the crop and raised fears of a decline in production.
India accounts for more than 40% of world rice exports, which amounted to 55.4 million tonnes in 2022. India's rice shipments reached a record 22.2 million tonnes in 2022, more than the combined shipments of the world's four largest rice exporters: Thailand, Vietnam, Pakistan and the United States.
India exports rice to over 140 countries. Major buyers of Indian non-basmati rice include: Benin, Bangladesh, Angola, Cameroon, Djibouti, Guinea, Ivory Coast, Kenya and Nepal. Iran, Iraq and Saudi Arabia mainly buy premium basmati rice from India, so they can afford to pay a higher price. But how many Bangladeshis will be able to buy rice imported from elsewhere?
India exported 17.86 million tonnes of non-basmati rice in 2022, of which 10.3 million tonnes was white non-basmati rice. In September 2022, India banned exports of broken rice and imposed a 20% tariff on exports of various grades of rice.
New Delhi did not place any restrictions on exports of basmati rice and parboiled rice, which amounted to 4.4 million tonnes and 7.4 million tonnes respectively in 2022.
Indian farmers plant paddy rice twice a year. Summer sowing, which begins in June, accounts for more than 80% of the total production, which amounted to 135.5 million tonnes in the 2022/23 campaign. In the winter months, paddy rice is mostly grown in the central and southern states.
The late arrival of the monsoon led to a severe rain deficit until mid-June. Although heavy rains in the last week of June canceled out the shortfall, they caused significant crop damage.
After the announcement, rice prices, which had been declining until then, started to rise again
For now the levels are still acceptable, but the cut in world exports has not yet been felt and its effect will greatly depend on production in other countries, such as Thailand, even if no one will be able to completely replace the Indian giant.
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The article India: rice exports banned. There will be repercussions on the price comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/india-vietato-lexport-di-riso-ci-saranno-ricadute-sul-prezzo/ on Fri, 21 Jul 2023 09:00:59 +0000.