Abundant global rice supplies to cushion impact of crop losses in Pakistan and China


A farmer tends to his rice field in Yangchao village, Liping county, Guizhou province, China June 11, 2021. Picture taken June 11, 2021. REUTERS/Thomas Peter

Join now for FREE unlimited access to Reuters.com

  • Heat and flood damage in key parts of China and Pakistan
  • Pakistan could lose a tenth of its rice production due to floods
  • Bangladesh buys more rice to fill domestic deficit
  • Global stocks comfortable after years of bumper harvests

SINGAPORE, Sept 6 (Reuters) – Abundant rice supplies from major exporters could more than offset an expected drop in production after floods in Pakistan and a severe heatwave in China damaged crops, capping any price rise due to stable Asian demand.

Pakistan, the world’s fourth-largest rice exporter, suffered major damage to agriculture, including rice, as floods ravaged large swaths of its farmland, while extremely high temperatures in parts of the China in late August weighed on rice production in the world’s biggest importer of the staple.

However, global rice stocks are quite comfortable and an improved outlook for Indian crops should ease any supply problems and limit any price increases due to recent strong demand that has emerged from Bangladesh, said a Singapore-based trader. in one of the world’s leading rice trading companies.

Join now for FREE unlimited access to Reuters.com

Pakistan is expected to have lost around 10% of its rice production estimated at around 8.7 million tonnes in 2022, while China has suffered damage, although the extent of crop losses is unclear, said traders.

Food prices have soared in Pakistan’s markets as devastating rains ruin crops and disrupt supplies, a harbinger of how the worst floods in decades are creating food shortages amid crisis financial.

“Pakistan’s rice production has been very good in recent seasons,” said Peter Clubb, market analyst at the International Grains Council. “While any significant production loss is obviously bad, this improvement in production over the past few seasons does leave some headroom.”

Chinese Agriculture Minister Tang Renjian expressed concern over high temperatures and drought that have hit rice production in the eastern provinces of Jiangsu and Anhui. Read more

“It’s too early to say exactly how low yields (in China) may be,” Clubb said. “A general point, stocks in China are still very abundant.”

MONSOON INCREASES INDIAN CULTURE PROSPECTS

Monsoon rains, which have been delayed in parts of India’s northern and eastern rice-growing regions, have improved over the past two weeks, boosting crop prospects for the largest rice supplier in the world, traders said.

India had previously discussed the need to restrict exports of 100% broken rice mainly used for fodder purposes. Read more

But improved rainfall in Indian rice-growing areas has ended any talk of government export restrictions, said a second trader in Singapore who sells Indian rice to buyers in Asia and Africa.

The Food and Agriculture Organization of the United Nations’ world price index fell for a fifth month in August, after hitting a record high in March following Russia’s invasion of Ukraine, the resumption of grain exports from Ukrainian ports helped to improve supply prospects. Read more

However, strong demand from Bangladesh has supported rice prices in recent weeks.

Bangladesh plans to import about 1.2 million tonnes of rice over the next few months to bolster its reserves and cool high domestic prices.

A senior Bangladeshi food ministry official said the country was buying 530,000 tonnes of rice from India, Vietnam and Myanmar under government-to-government deals and was in talks with major producers in India, Vietnam and Thai.

Indian rice prices last week hit their highest level in more than a year at around $383 a tonne, although the market is well below the 2021 high of $405 and the 2020 high of $427. .50 dollars.

Thailand and Vietnam, the world’s second- and third-largest rice exporters respectively, have agreed to cooperate to raise prices, a move aimed at increasing leverage in the global market and boosting farmers’ incomes.

Join now for FREE unlimited access to Reuters.com

Reporting by Naveen Thukral; additional reporting by Nigel Hunt in London and Ruma Paul in Dhaka; Editing by Christian Schmollinger

Our standards: The Thomson Reuters Trust Principles.

Previous Thai Palace | Authentic Kent Thai Restaurant
Next After 84 years of activity, the butcher's shop in Knoche is for sale | food drink