World rice supply shrinks after India’s export ban in July

SINGAPORE, Aug 31 (Reuters) – Rice prices in key exporting countries including Thailand and Vietnam have risen around 20% since India, the world’s biggest shipper of the grain, banned shipments of a key variety in July, reducing global supplies.

Traders expect similar supply restrictions from other exporters who need to ensure domestic food security, which has left importers scrambling to secure shipments.

India last year banned broken rice exports and imposed tariffs on shipments of various grades, ending price stability that had lasted for more than a decade.

Below are the key events that have occurred since the end of July that have led to supply shortages.

* July 20 – India it stops exports of its top category of rice, a move that would roughly halve shipments from the world’s largest exporter, raising fears of further inflation in world food prices.

* July 21 – Vietnam, the world’s third-largest rice exporter, calls on the country’s food association to ensure domestic rice supplies are sufficient one day after India announced its ban.

* Jul 21 – India’s ban on non-basmati white rice exports results in the cancellation of contracts to supply around 2 million metric tons to the world market.

* July 27 – Prices of rice exported from Vietnam and Thailand soar to their highest level in more than a decade as restrictions on exports from India raise supply concerns.

* July 28: India restricts exports of deoiled rice bran, used in the cattle feed industry, until November 30.

* July 28: The United Arab Emirates bans exports and re-exports of rice for four months, including rice of Indian origin.

* July 29 – Philippine President Ferdinand Marcos Jr. says the country must increase its rice stocks and may seek a supply deal with India, concerned about the potential impact of dry El Niño weather on the local crop and other suppliers.

The Philippines is the second largest importer of rice in the world.

* August 1: Rice exporters Thailand and Vietnam, the second and third largest exporters, begin renegotiate prices for sales contracts for about half a million metric tons for shipment in August.

* August 4: United Nations food agency rice price index. he wake up 2.8% in July compared to the previous month, to its highest level in almost 12 years.

* Aug. 7: The Philippines says it can extend reduced import tariffs on rice and other raw materials beyond 2023 to ease pressure on inflation.

* Aug 11 – Retail prices for imported and locally produced rice in the Philippines have risen 4-14% in about two weeks, government data shows, as global and domestic farm-gate prices soared , adding pressure on food inflation.

* August 16: The Philippine Department of Agriculture recommends an additional rice import of approximately 500,000 metric tons to cover potential crop losses due to dry El Niño weather conditions.

* August 16 – Vietnamese exporters renegotiate higher prices for around half a million metric tons of rice.

* Aug 18: Data shows that Indian farmers have planted 36.1 million hectares (89.2 million acres) of rice, up 4.3% from the same period last year, as abundant July monsoon rains and higher prices boosted acreage.

* Aug. 21: Bulog, Indonesia’s state-owned food procurement company, says it is looking to import rice from Cambodia and Myanmar to top up government stocks, anticipating production disruptions due to the El Niño weather pattern.

* Aug 25: Myanmar plans to temporarily restrict rice exports to control rising domestic prices.

* August 25 – India imposes a 20% tariff on exports of parboiled rice, which represents 30% of the country’s rice exports.

* Aug. 27: India imposes a minimum export price of $1,200 per ton on basmati rice shipments.

* Aug 29 – India’s export duty on parboiled rice prompts buyers and sellers to postpone shipments of about 500,000 tons until after mid-October.

* August 30: India allows merchants ship they took out shipments of non-basmati white rice that were stranded in ports when India imposed its export ban.

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