The large amount of rice available around the world will help to lessen the effects of crop losses in Pakistan and China.

Singapore (Reuters): Floods in Pakistan and a severe heatwave in China damaged crops, which caused any gains in price from sustained Asian demand to be capped. There may not be much of a drop in rice production because of these natural disasters because important exporters have a lot of rice.

In Pakistan, which is the fourth-largest exporter of rice in the world, extensive damage was caused to agriculture, including rice, as floods ravaged large swaths of its farmland. On the other hand, extremely high temperatures in parts of China at the end of August took a toll on rice production in the country, which is the largest importer of the staple in the world.

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A trader from Singapore who works for one of the most successful rice trading companies in the world says that the world’s rice stockpiles are pretty good, and that the outlook for the Indian crop is getting better. This should ease any worries about the supply of rice and keep prices from going up too much because of strong demand from Bangladesh.

According to traders, Pakistan is expected to have lost somewhere around 10% of its estimated rice production for the year 2022, which is approximately 8.7 million tonnes. Some damage is also said to have happened in China, but the size of crop losses is still unknown.

As a result of disastrous rains that have destroyed crops and disrupted supplies, food prices have skyrocketed in markets across Pakistan. This is an early hint of how the worst floods in decades are generating food shortages at a time when the economy is in a state of crisis.

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According to Peter Clubb, a market analyst at the International Grains Council, Pakistan’s rice production has been extremely successful over the course of the past few seasons. Even though a big drop in production is definitely a problem, the fact that production has been steadily going up for the last few years gives us some room to maneuver.

China’s Minister of Agriculture, Tang Renjian, said that high temperatures and drought have hurt rice production in the eastern provinces of Jiangsu and Anhui. He was worried about the situation.

According to Clubb, it is too early to determine exactly how low yields may be (in China).”As a general point, the availability of goods in China is still relatively high.”

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The rainy season improves crop prospects in India.

Traders say that the monsoon rains, which had been late in some parts of India’s northern and eastern rice-growing regions, have gotten better over the last couple of weeks. This has raised hopes for the rice crop in the world’s largest rice-producing country.

Earlier, India had been considering whether or not there was a need to place restrictions on the export of 100% broken rice, which is typically used for animal feed.

But a second dealer in Singapore who sells Indian rice to buyers in Asia and Africa says that the idea of the government putting limits on exports has been put to rest by the increase in rainfall in the areas where Indian rice is grown.

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After reaching a record in March as a result of Russia’s invasion of Ukraine, the world price index compiled by the United Nations Food and Agriculture Organization continued its downward trend in August, falling for the fifth consecutive month. This drop was caused by the fact that grain exports from Ukrainian ports started up again, which made the supply outlook better.

Rice prices, on the other hand, have been relatively stable over the past few weeks because of Bangladesh’s robust demand.

In the next weeks, Bangladesh intends to bring in approximately 1.2 million metric tonnes of rice from overseas in order to bolster its rice stocks and bring down the country’s high rice prices.

According to a senior official from the Bangladeshi Food Ministry, the country is buying 530,000 metric tonnes of rice from India, Vietnam, and Myanmar as part of government-to-government transactions. Additionally, the country is in discussions with major rice producers like India, Vietnam, and Thailand.

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Rice prices in India reached around $383 per tonne last week, which is the best they have been in more than a year. Despite this, the market is still much lower than the high of $405 in 2021 and the record of $427.50 in 2020. [RIC/AS]

The countries of Thailand and Vietnam, which are respectively the second and third largest rice exporters in the world, have come to an agreement to work together to raise prices. This step is meant to give the countries more power on the global market and help farmers make more money.

(Reporting was done by Naveen Thukral; supplementary reporting was done by Nigel Hunt in London and Ruma Paul in Dhaka; Christian Schmollinger was responsible for editing.)

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