Rice trade in Asia almost came to a standstill
Since India has banned the export of rice, the trade of rice in the Asian markets has reduced to a great extent.
India had announced a ban on the export of rice last week, the effect of which is now being seen in the whole world and especially in the Asian market. The price of rice is increasing rapidly in the market. Within 4 days of India’s decision, rice prices have increased by 4 to 5 percent in Asian markets.
This has almost brought the rice trade to Asia to a standstill as Indian traders are no longer signing new agreements. As a result, buyers are looking for alternatives like Vietnam, Thailand and Myanmar. But the traders of these countries have increased the prices due to seizing the opportunity. India, the world’s largest rice exporter, had announced a ban on the export of broken rice only last week.
Along with this, export tax on many other varieties was imposed up to 20 percent. The decision has been taken to check the rising prices of rice in the local markets due to below-average monsoon rains.
If India does not take any steps on the export of rice soon, then there may be a shortage of rice in the Asian markets.