New Delhi
India’s restrictions on rice exports have paralysed trading in Asia, with buyers scouring for alternative supplies from Vietnam, Thailand and Myanmar where seller are holding off on deals as prices rise, industry officials said.
India, the world’s biggest exporter of the grain, banned shipments of broken rice and imposed a 20 per cent duty on exports of various other types on Thursday as the country tries to boost supplies and calm prices after below-average monsoon rainfall curtailed planting.
Rice is the latest in a string of commodities that have faced export curbs this year as governments struggled to raise supplies and fight inflation amid trade disruptions triggered by the Ukraine war.
Rice prices have jumped 5pc in Asia since India’s announcement and are expected to rise further this week keeping buyers and sellers on the sidelines.
“Rice trading is paralysed across Asia. Traders don’t want to commit anything in a hurry,” said Himanshu Agarwal, executive director at Satyam Balajee, India’s biggest rice exporter.
“India accounts for more than 40pc of global shipments. So, nobody is sure how much prices will rise in the coming months.”
Rice is a staple for more than 3 billion people, and when India banned exports in 2007, global prices shot to record highs of around $1,000 per tonne.
India’s rice exports reached a record 21.5m tonnes in 2021, more than the combined shipments of the world’s next four biggest exporters of the grain: Thailand, Vietnam, Pakistan and the United States.
