World rice prices rise after India to limit exports due to drought effects

The Indian government and industry officials said Friday (Aug. 26) that India, the world’s largest rice exporter, is considering limiting exports of 100% broken rice after rice acreage declined due to a “drug-free” crisis with insufficient rainfall.

India’s tendency to limit rice exports could cause global rice prices to skyrocket. This is because India exports more than 40% of its rice to the world market, which could affect poor African countries that import 100% of their broken rice for consumption. Most of the time, broken rice is used for feed purposes.

A senior official said, “We have discussed whether it is necessary to limit exports of 100% broken rice.” This is a consideration of limiting exports of 100% broken rice and not considering the overall control of rice exports.

The latest talks on export restrictions for rice come after India saw below-average rainfall in key rice-growing areas such as West Bengal, Bihar, and Uttar Pradesh.

India’s Ministry of Agriculture reported last week that Indian farmers planted 34.37 million hectares of rice, down 8.3% from the previous year.

India exported 21.5 million tons of rice in 2021, including 3.6 million tons of broken rice.

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