As a leading rice producer and accounting for 40% of world rice exports, India’s move has sent rice prices soaring in the market as buyers turn to alternative sources from Thailand and Vietnam.
Export prices of rice from Vietnam and Thailand spiked to their highest levels in more than a decade this week on supply concerns. Specifically, the price of Vietnam’s 5% broken rice increased to $550-575/ton on July 27, the highest level since 2011, from $515-525/ton a week ago. Meanwhile, on July 27, the price of Thailand’s 5% broken rice rose to an 11-year high, at $605-610 per tonne compared to $545 per ton last week. “Exporters were shocked because the ban pushed prices up and there was also no more supply,” said a trader in Bangkok.
At one point, the rice export ban pushed India’s rice prices to a five-and-a-half year high, at $445-450/t from $421-428/mt, even as demand fell.
Impact of rice export ban on global food security
