South Africa, which mainly imports its rice, stands to pay the price as India, the world\u2019s largest rice exporter, has now implemented restrictions on every variety of the grain that it ships overseas.<\/p>\n\n\n\n
According to analysis by Bloomberg, this will tighten global supply even further, pushing up prices.<\/p>\n\n\n\n
“Over the past few days, India imposed a minimum price on shipments of basmati rice and put an export tax on the parboiled variety,” the group said.<\/p>\n\n\n\n
“The government of Prime Minister Narendra Modi has stepped up measures to tackle rising food prices ahead of an election early next year.<\/p>\n\n\n\n
“The latest curbs are likely to ripple across the global market, with benchmark rice prices in Asia near the highest level in almost 15 years.”<\/p>\n\n\n\n
Here\u2019s a list of India\u2019s measures on rice:<\/p>\n\n\n\n
Basmati<\/strong><\/p>\n\n\n\n Non-Basmati Parboiled<\/strong><\/p>\n\n\n\n Non-Basmati White<\/strong><\/p>\n\n\n\n Broken<\/strong><\/p>\n\n\n\n South African impact<\/strong><\/p>\n\n\n\n According to an assessment by Gilberto Biacuana, a research analyst at the Land Bank, estimates currently indicate that South Africa imports 90% of its rice requirements. <\/p>\n\n\n\n “This exposes consumers to high prices in the event of global supply shocks, exchange rate fluctuations and outright export bans from major rice-producing countries as witnessed in 2020 at the height of the Covid-19 pandemic,” he said.<\/p>\n\n\n\n In recent months, not only has there been an increase in global rice prices influenced by limited global rice supplies, but a weaker rand is likely to result in higher rice prices for South African consumers.<\/p>\n\n\n\n Consumer prices typically lag by three to five months in reflecting changes to the market, so prices could start shooting up by December.<\/p>\n\n\n\n According to data from TradeMap ITC, South Africa imported approximately 1.1 million tonnes of rice to the value of R7.8 billion in 2022. While Thailand accounts for the biggest portion of local imports (76.5%), India still makes up a significant amount (19.1%).<\/p>\n\n\n\n Rice is a summer crop mostly grown in paddy conditions. Small quantities of rice are currently grown in South Africa, mostly in KwaZulu-Natal (43%), the Free State (34%) and Limpopo (19%). <\/p>\n\n\n\n According to Biacuana, the long-held view has been that rice is a water-intensive crop that cannot be grown commercially because of water scarcity in South Africa.<\/p>\n\n\n\n However, he said that the current strain on the sector does present some opportunities for developments in this space, particularly with dryland rice varieties that give good yields that can be grown commercially in South Africa.<\/p>\n\n\n\n “(There is) potential for upscaling the existing and new rice farmers through technical support, finance and the development of a domestic rice value chain. This has the potential to create employment along the rice value chain from the farm to the retail,” he said.<\/p>\n\n\n\n “Importantly, this import substitution strategy is likely to reduce unemployment, poverty and inequality. In addition, consumers are likely to be insulated from the fluctuations in global trade policies and consequently the resultant high prices.”<\/p>\n\n\n\n\n
\n
\n
\n