Amid Soaring Food Inflation, Analysts Apprehensive Of A Surge In Rice Price

India had banned wheat exports on May 13, 2022 seeking to manage the entire food security of the country. Experts are already expressing their apprehensions that India may also restrict export of rice and the move may prove detrimental to global food security as rice is a vital staple.

As of now the surging wheat prices may compel consumers to shift to rice trying to explore options for inexpensive food alternatives and it may also cause a surge in the prices of rice. Presently, rice prices have not skyrocketed and continue to remain stable because of adequation production and sufficient inventory. However, the situation may alter dramatically in case consumers decide to opt for rice instead of wheat and it may bring down the stockpiles and it may also lead to a rice export restriction.

The highest production of rice takes place in Asia. Approximately 90% of rice is produced in Asia and more than half of the world population depends on rice.
Indian government and farmers are hoping for a good monsoon season so that food inflation can be brought under control. The situation has not gone out of control as of now as the rice inventory is sufficient presently.

But if the spiraling wheat prices cause shift to rice then the situation may change fast and may bring down the current stocks of rice. It may cause restrictions by main producers to maintain domestic food supply. Presently, global markets are apprehensive that after wheat ban by India, rice could be next. The coming days will remain crucial to determine how the situation will unfold and will there be ban on rice or not.