World rice production is likely to lower in 2022/23 reversing the trend of increasing output consecutively for several years, reports Gro Intelligence.
The increased supply of the commodity from top exporters like India had helped in arresting global rice prices though the prices of other commodities were hiked due to Russia’s invasion of Ukraine.
As the supply is shrinking, it would lead to rising prices of the world’s No.3 cultivated grain. This would accelerate food inflation in many countries.
The grain’s stock-to-use ratio, in major rice exporters, is likely to drop in 2022/23 to the lowest level in five years. The global wheat inventories are likely to fall to the lowest level in 14 years and this will also impact rice prices.
The rising prices have prompted many countries to take protectionist measures. India has banned the export of broken rice since September and has set a duty of 20% on exports of certain other types of rice.
