Food inflation: Rice under pressure, prices expected to boil over
Published on: September 19, 2022.
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Severe disruptions in global rice suppliers combined with a soaring demand for the grain could break the fragile balance between supply and demand, leading to price increases and, once again, supercharging global food inflation.
Indian rice is heavily subsidized by the nation’s government, however with the new 20% levy, rivaling nations are now prepared to compete in prices. Vietnam and Thailand, the second and third biggest exporters, will see increased demand, but if the demand shifts too fast and is overblown, rice prices will soar in the two countries. According to the Thai Rice Exports Association, it will cause rice prices to rally. Nevertheless, the body doesn’t think that Thailand will apply restrictions on exports.
Source: https://trademagazin.hu/en/az-elelmiszerinflacio-a-rizs-globalis-kereskedelmere-is-nyomast-gyakorol/
