Global Rice Market Volatility: India's Export Ban Sparks Fear of Copycat Restrictions
Originally Published 2 years ago — by Reuters
India's ban on rice exports has created a 10 million metric ton gap in the global rice supply, leading to concerns of copycat curbs by rival suppliers. The ban has caused a surge in rice prices, hitting 15-year highs, and could exacerbate global food inflation. As India now accounts for over 40% of global rice trade, other rice-exporting nations like Thailand and Vietnam may be forced to follow suit. However, limited surplus capacity for exports and domestic demand constraints may hinder their ability to bridge the supply gap. The situation could lead to a chain reaction of export restrictions, reminiscent of the 2007/08 price rally.