Rice prices are climbing around the world as supplies get tighter. Key exporting countries like Thailand and Vietnam have seen rice prices climb as much as 20 percent since India banned shipments of a key rice variety in July.
India is the world’s largest shipper of the grain, and the export ban is squeezing global supplies. Reuters says traders expect similar export cuts by other countries that need to ensure their domestic food security. That’s leaving importers scrambling to acquire other shipments of rice. India banned exports of broken rice last year and imposed a duty on shipments of various grades of rice. That ended price stability that ran for over ten years.
India did allow traders to ship out non-basmati white rice cargoes that were stuck in ports when India imposed its export ban. India’s farmers have planted 89.2 million acres of rice, 4.3 percent higher than last year.
