Global carryover stocks are estimated to decline by 5-8 million tonnes, leading to volatility in rice prices
Due to restrictions imposed on rice export by India, there is a shortage of supply of 2 million tonnes of rice in the global market. According to experts and analysts, the global carryover stock is estimated to fall by 5-8 million tonnes and due to which there is a possibility of volatility in rice prices. Due to shortage in supply, prices of rice may increase in the global market.
Traders say that due to the ban on export of non-Basmati white rice, 4.67 million tonnes of rice going out of the country has been stopped. However, other rice exporting countries have supplied additional 2 million tonnes of rice in the market. There is a gap of 2 million tonnes between demand and supply in the global market. According to the International Grains Council, despite the restrictions, the Indian government is considering reducing the reserve price of rice in open market auctions. The council says that India will emerge as the top rice exporter during 2023-24 (August 2023-July 2024).
According to the council, global rice trade is expected to decline by 2 percent in 2024 due to weak purchasing power from Asian importers, especially Indonesia. However, despite a big decline in shipments, India will remain the largest exporter. According to the US Department of Agriculture (USDA), the global rice trade has been affected due to the restrictions imposed by India.
Let us tell you that the government started banning the export of rice from the year 2022. First the government banned the export of non-Basmati rice. After that, the export of all non-Basmati rice except Sela rice was completely banned. After that, along with 20 percent tax on export of sela rice, a condition of minimum export price was imposed on Basmati rice. The 20 percent export tax condition imposed by the Central Government on the export of parboiled rice has been extended till March 31.
Published – January 17, 2024, 01:37 IST
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