Last Updated :
29 October 2009 at 15:05 IST
India, China rice output key to Asia’s food security
MANILA (Commodity Online) : Shortages in rice production in India, China and Thailand have hit the world market badly, according to analysts.
Rising rice prices and possible shortages in the world's poorest countries will hinge on what these major growers do to make up for millions of tons of the staple lost to floods and droughts, they said.
All eyes are on India, traditionally one of the world's top rice exporters, which may import 1.1 million tons to 3.8 million tons next year to replace production losses after a drought ravaged the country's rice bowl.
USA Rice Federation said Just the fact that India has significantly reduced production alone is a significant development given the tightness of supplies that we see in the world today.
But the fact that they may actually be an importer is of even more importance, it said.
India's return to the import market is viewed as pushing up the price of benchmark Thai 100 percent Grade B rice, which this month traded at $530 per ton (metric ton), though still down from more than $1,000 at the height of last year's food crisis.
Other factors include whether China will export or not, and if Thailand releases its bumper stocks. China holds half the world's rice stocks and has been exporting on-and-off.
U.S. Rice Producers Association said circumstances are there certainly for another panic in the marketplace.
India may also turn to wheat, which remains relatively cheap, as a short-term solution to its lower rice production but its shift to wheat consumption may not be enough to stop the country from importing, analysts said.
The 2008 rice crisis demonstrated that the crop "is a very political commodity," they added.
Last year's record-high price of rice and other staples led to riots in at least 30 countries, according to the World Food Program.
The biggest producers, Thailand, Vietnam and India, had curbed exports to protect domestic supply.
In the Philippines, people formed long lines to buy low-quality rice at subsidized prices while traders were suspected of hoarding.
Philippine Agriculture ministry said Wednesday that any rice crisis similar to last year's would hurt developing countries like it, the world's top rice importer.
The Philippines says it has lost at least 925,000 tons (840,000 metric tons) due to recent back-to-back storms.
NCDEX POTATOFAQJUL12 20 July 2012
contract was trading at
Rs 0 . What's your view on it?
After reading this article, people also read:
