Indian Rice, a very important food commodity for the world, is getting more expensive nowadays. So, this is attracting a lot of attention now. According to the United Nations Food and Agriculture Organization (FAO), the cost of rice worldwide is the highest in 15 years.
In July, India surprised everyone by stopping the export of a certain type of white rice that is not basmati. So, this decision had a quick impact on the prices of food around the world, making them go up.
A Ripple Effect on World Grains
It’s not just about rice; the shortage of this essential staple is causing a ripple effect across other grains like wheat, soybeans, corn, and maize, which are often used as substitutes for rice.
Worldwide Export of Indian Rice
India, as the world’s largest rice exporter, has consistently accounted for nearly 40% of all rice shipments worldwide. The projection for 2022–2023 estimates that India will export an enormous 54 million tonnes of rice.
In the current year, India is on track to dispatch 20.5 million tonnes of milled rice, surpassing Thailand’s 8.5 million tonnes.
Following Thailand in the rankings are Vietnam, Pakistan, and the United States. India maintains its leading position because it offers competitive prices and possesses abundant rice supplies.
Who Craves Indian Rice?
From January to July, India sent about 12.9 million tonnes of rice to nearly 150 countries. This rice was worth almost $7 billion. Most of the rice, about 77 percent, was a type called non-basmati parboiled rice. The rest, which was 23 percent, was fragrant basmati rice.
The majority of the top buyers for Indian rice are African nations, which primarily import broken rice, the most economical and filling variety.
Top Buyers of Non-Basmati Rice:
- Benin – 1.17 million tonnes
- Senegal – 872,080 tonnes
- Kenya – 685,302 tonnes
Top Buyers of Basmati Rice:
- Saudi Arabia – 639,150 tonnes
- Iran – 545,751 tonnes
- Iraq – 383,687 tonnes
Worldwide Rice Consumption in 2022/23 and Some Facts
- China eats the most rice in the world, with 155 million metric tons in 2022/2023.
- India comes next, consuming 108.5 million metric tons in the same period.
- China and India are also the top rice producers globally.
- Rice needs flooded fields called paddy fields to grow.
- Rice can be used in many dishes and goes with various flavors.
- The main types of rice are indica, japonica, and aromatic.
- The overall price index of rice has gone up by nearly 15 points since 2016.
The Global Impact
India’s decision to halt rice exports led to the US Department of Agriculture (USDA) revising its forecasts for global rice trade in 2023 and 2024. According to their predictions, there will be a reduction of 3.44 million tonnes in rice trade in 2024.
This export interruption caused prices for various types of rice to increase. So there’s no indication that the prices will decrease in the near future.
But the FAO says that if India stops these export restrictions, there’s a chance that the rice trade might get better next year.
India is a big player in the rice business, and rice is a very important food for many people. When India interrupted rice export, it showed how much the whole world relies on each other for food. So, Indian rice is a big part of what people eat in different countries.
