India effect, world rice prices record in 15 years
Published Sep 9, 2023
India's ban on rice exports has caused world rice prices to reach their highest point in 15 years, according to the Food and Agriculture Organization (FAO). This has led to trade disruptions and panic-buying, with countries and businesses stockpiling rice. The ban is expected to have a significant impact on African countries, Turkey, Syria, and Pakistan, as well as affect global rice trade in the coming years.
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Jakarta, CNBC Indonesia - World rice prices reached their highest point in 15 years in August. This happened after the main exporter, India, banned the sale of rice abroad. This was stated by the Food and Agriculture Organization (FAO), Friday (8/9/2023). Even though global food prices decreased in August, rice prices actually rose 9.8% compared to the previous month. "(This) reflects trade disruptions following India's ban on exports of Indica white rice," FAO said in its monthly report. FAO reported that India's policies created world panic. Several countries and business actors chose to hold stock which caused prices to skyrocket. "Uncertainty about the duration of the ban and concerns about export restrictions are causing supply chain actors to hold stock, renegotiate contracts, or stop providing price offers, limiting most trade to small volumes and pre-cleared sales," he added. Rice is the world's main staple food and prices on international markets have soared due to the ...