Global rice supply to reduce the impact of crop losses in Pakistan
Abundant rice stocks from major exporters could largely offset the projected drop in production after floods in Pakistan and a severe heatwave in China damaged crops, slowing any price increases fueled by steady Asian demand.
Pakistan, the fourth largest rice exporter in the world, has suffered extensive damage to agriculture, including rice, as floods devastated large areas of its farmland, while extremely high temperatures in parts of China in late August caused rice production in the largest country in the world put a strain on it. staple importer. However, global rice supplies are quite comfortable, and an improved Indian harvest outlook should allay any concerns about supply and limit any price hikes stemming from the recent strong demand that has emerged from Bangladesh, a Singapore-based trader said in one. of the best rice in the world trading companies. Pakistan is projected to have lost around 10% of its estimated rice production of around 8.7 million tonnes by 2022, while China has suffered some damage, although the extent of crop losses is unclear, they have affirmed the traders.
Food prices have soared in markets across Pakistan as devastating rains devastate crops and disrupt supplies, a first sign that the worst flooding in decades is causing food shortages at a time of financial crisis. “Pakistan’s rice production has been very good in recent seasons,” said Peter Clubb, market analyst at the International Grains Council (IGC). “While any big loss in production is obviously bad, this improvement in production over the past few seasons does leave some room for manoeuvre.” Chinese Agriculture Minister Tang Renjian expressed concern about the impact of high temperatures and drought on rice production in the eastern provinces of Jiangsu and Anhui.
Global rice supply to reduce the impact of crop losses in Pakistan
“It’s too early to say exactly how bad the returns (in China) might be,” Clubb said. “A general point, supplies in China are still very abundant.”
MONSOON BOOSTS INDIAN CROP PROSPECTS
Monsoon rains, which have been delayed in parts of India’s northern and eastern rice-growing regions, have improved in recent weeks, boosting crop prospects at the world’s largest rice supplier, said traders. India had previously discussed the need to limit the export of 100% broken rice, which is mainly used for fodder. But an improvement in rainfall in India’s rice-growing areas has put an end to any discussion of the government’s export restrictions, said a second Singapore trader who sells Indian rice to buyers in Asia and Africa.
The United Nations Food and Agriculture Organization’s world price index fell for a fifth month in August, after reaching a record high in March after Russia invaded Ukraine. However, strong demand from Bangladesh has supported rice prices in recent weeks. Bangladesh plans to import around 1.2 million tons of rice in the coming months to bolster reserves and cool high domestic prices. A senior official from Bangladesh’s food ministry said the country is buying 530,000 tons of rice from India, Vietnam and Myanmar under government agreements and is in talks with major producers in India, Vietnam and Thailand. Indian rice prices rose to their highest point in more than a year last week at around $ 383 per ton, although the market is well below the 2021 high of $ 405 and the 2020 high of $ 427. 50. Thailand and Vietnam, the second and third largest rice exporters in the world, respectively, have agreed to work together to raise prices, a move aimed at increasing global market influence and increasing farmers’ incomes.
