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Rice Market Shows Strain After India’s 6-Week Campaign of Curbs

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In about six weeks, India has rattled the rice market.

The world’s top shipper has placed restrictions on all of its exports, panicking governments from Asia to West Africa. Other big growers have tried to reassure consumers that rice supply is ample, but it’s done little to calm the market.

The anxiety over supply is understandable. Rice is vital to the diets of billions and contributes as much as 60% of the total calorie intake for people in parts of Southeast Asia and Africa. The benchmark price is currently at $646 a ton and weather could shake up the market even further. The cost of rice in the capital New Delhi was still higher than a year ago as of Aug. 31, but since the export ban in July, prices have held steady at 39 rupees a kilogram. Across the nation, they’ve inched up slightly. However, India’s restrictions are reverberating across other countries.

 

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