Singapore, Indonesia, and the Philippines have appealed to India to resume rice exports due to disruptions caused by India's suspension of non-basmati shipments to control prices and the rising levels of global food insecurity triggered by the pandemic and Ukraine war.
Both rice and wheat supplies are facing alarming shortages, raising concerns about a potential world food crisis, and the Indian rice export ban, along with other factors, has implications for global rice markets and prices.
Oil prices in Asia rose slightly as traders considered weak demand indicators from China and the possibility of further U.S. rate hikes, while also factoring in potential supply constraints.
India is facing a rise in food prices due to uneven and scanty rain, prompting the government to take measures to boost supplies and ease inflationary pressures.
India has imposed a 20% duty on parboiled rice exports, which is expected to reduce shipments and increase global rice prices, following previous bans on non-basmati white rice and broken rice exports.
India, the world's biggest exporter of rice, has imposed more restrictions on rice exports in an effort to prevent smuggling and cool local food prices ahead of a general election, further squeezing global supplies of the staple grain.
Sky-high food inflation in India, caused by erratic monsoon rains, is leading to low sales and steep discounts in the fashion retail sector, raising concerns about consumer spending.
The Indian government's efforts to control food prices, such as imposing taxes and export bans, may help contain inflation domestically but could lead to higher prices globally, particularly for rice, affecting countries that rely on food imports.
A severe drought in Sri Lanka is threatening the country's summer rice harvest, which has already been hit by last year's financial crisis, causing widespread unrest and ousted its former president, as well as skyrocketing prices of inputs and a shortage of fertilizers.
Erratic climate conditions in India, including a dry August, have led to a significant increase in food prices, with onions alone becoming 25% more expensive since June, causing concern about global food inflation as India is a major exporter of rice, sugar, and onions and is a key supplier to many Asian and African countries.
The Philippines has implemented price controls on rice in order to protect consumers from inflated prices and curb inflation, with President Marcos setting maximum prices for regular and well-milled rice.
Global rice prices reached a 15-year high in August due to India's ban on some rice exports, leading to trade disruptions and limited supply-chain activity, according to the Food and Agriculture Organization.
Surging rice prices in the Philippines, caused by India's export restrictions, serve as a warning for other major importers as they rush to secure supply and contain rising costs.
Global food commodity prices declined by 2.1 percent in August, driven by falling prices of essential food items, excluding rice and sugar, according to the latest report from the Food and Agriculture Organization of the UN (FAO). Dairy products, vegetable oils, meat, and cereals experienced decreases in price indices, while the sugar price index showed moderate growth. The report also highlighted a significant surge in rice prices due to disruptions in the rice trade following India's ban on exporting Indica white rice.
Myanmar is facing cooking oil shortages and inflated prices due to the military government's struggle with containing inflation.
Despite a price cap on rice, rising food price inflation is expected in the Philippines due to a weakening exchange rate with the US dollar and a lack of domestic food production.
