For now, the rise in global prices has not yet reflected into local rice prices across South Africa. But that could change, writes Following India's embargo on non-basmati rice exports in July 2023, global rice export prices have risen past those seen during the Covid-19 lockdowns in 2020.
The embargo by India meant that countries needed to look for other alternative rice suppliers to fill the gap left by rice imports from India. Countries experienced this in the instance of wheat when Russia invaded Ukraine in February 2022, as they had to replace Black Sea wheat supplies at a higher cost.
Export prices for a ton of 100 grade B white rice from Thailand have increased by 20% or US$103 from US$520 on 17 July to US$623 on 8 August 2023. For the same period, a ton of 5% broken rice from Vietnam has increased by 15% or US$78 . Depending on how bad the situation develops in the next weeks throughout world grain supply, particularly rice and wheat, some countries may require government-to-government talks to assist vulnerable consumers, but we have not reached that stage yet, and South Africa is unlikely to. But, if the situation deteriorates to that point, South Africa is a BRICS member, along with India, and the two countries have historically strong trade ties.