India's ban on rice exports places the international market in a competitive position.

DNHN - The limited supply of rice poses a risk of increasing rice prices and global food inflation, affecting Asian and African consumers, according to analysts.

As sellers attempt to fill the void left by India's ban on rice exports, global markets are concerned that rival suppliers will take similar measures to avoid domestic shortages. New Delhi has left behind 10 million cubic meters of space, raising concerns about the already high global food inflation.

According to analysts, India's most recent restrictions are nearly identical to those it imposed in 2007 and 2008, causing a domino effect in which many other nations have been forced to impose export restrictions. to safeguard local consumers.

This time around, the impact on supply and prices could be even greater, as India now accounts for more than 40 percent of global rice trade, up from 22 percent 15 years ago, putting pressure on exporting countries. Thailand and Vietnam both consume rice as their staple food.

"India is significantly more significant to the rice trade now than in 2007 and 2008" In a domino effect, India's ban forced other exporters to implement similar restrictions. Even at this point, they have little choice but to respond to market forces, according to a grain dealer with a global trade firm based in New Delhi who spoke on condition of anonymity.

After India surprised buyers last month by imposing a rice sales ban, the impact on the price of the world's most consumed food staple has been swift, reaching a 15-year high. To reduce costs, non-basmati white is widely consumed. New Delhi has restricted its supply of broken rice of lower quality in 2022.

According to analysts and traders, the limited supply of rice threatens to increase rice prices and global food inflation, negatively impacting poor consumers in Asia and Africa. Due to erratic weather and shipping disruptions across the Black Sea, food importers are contending with limited supplies.

Nitin Gupta, senior vice president of Olam Agri India, one of the world's leading rice exporters, stated, "Thailand, Vietnam, and other exporting nations are poised to step up their game to fill the void left by India's shortfall."

"However, their ability to export surplus is constrained. This restriction could set the stage for price increases in other origins comparable to the extraordinary price increase we've witnessed. observed in 2007/2008."

In 2008, rice prices reached an all-time high of more than $1,000 per tonne after India, Vietnam, Bangladesh, Egypt, and other small-scale producers restricted exports.

PV t/h