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A report by Credit Ratings giant Fitch has stated that the world is all set to report its highest shortfall in 20 years due to falling production on a global scale.
Rice production has been declining globally as a majority of factors have resulted in the resulting shortfall. The Russia-Ukraine war led to a decline in rice yield from the European Union, while poor weather conditions affected economies like China and Pakistan.
India, which is the largest exporter of rice, had to take steps to ensure sufficient rice supply in the domestic economy as it banned exports of broken rice due to lower rains in major rice-producing states.
The global rice market is expected to log its largest shortfall in 20 years in 2023. The decade-high rice prices are expected to continue as Fitch has estimated an 8.7 million tonnes shortfall in production, the highest since 2003-04.
The production deficit will affect Asia the most, especially countries like Indonesia, Malaysia, the Philippines and a few African countries that are net rice importers. The surging prices of the staple grain, which averaged around $17.30 cwt during 2023, are expected to ease to a maximum of $14.50 cwt, which will result in a rise in the import bill of such countries.
The report resulted in a massive surge in Indian rice stocks as the current high prices are expected to continue till 2024. KRBL surged 12.17%, LT Foods was up 7.76% & Kohinoor Foods was up 4.94% after today's session ended.
- Aman Agarwal
Also Read, Total India Population to surpass China in mid-2023
