Date: October 2, 2024
New Delhi/Islamabad – In a significant development, India and Pakistan, two of the world’s largest rice producers, have lifted export restrictions, sparking a global price drop. The move is expected to impact the international rice market, benefiting consumers but potentially hurting farmers in other producing countries.
India, the world’s largest rice exporter, accounting for over 40% of global shipments, has removed its 20% export duty on non-basmati rice. Pakistan, the world’s third-largest rice producer, has also lifted its export ban.
“The decision aims to increase exports, earn foreign exchange, and support farmers,” said India’s Commerce Minister.
Pakistan’s Commerce Ministry stated, “Removing export restrictions will help stabilize domestic prices and boost exports.”
The global rice market is bracing for the impact. Analysts predict prices will drop by 10-15% in the coming weeks.
“This will be a welcome relief for importers, especially in Africa and Southeast Asia,” said a rice trader. However, farmers in other producing countries, such as Thailand and Vietnam, are concerned about the potential price drop.
“We’re worried about the impact on our livelihoods,” said a Thai farmer.
The United States Department of Agriculture (USDA) estimates global rice production will reach 495 million tons in 2024-25, up 2% from the previous year.
India’s rice exports are expected to surge to 15 million tons, while Pakistan’s exports are projected to reach 4 million tons.
As the global rice market adjusts to the new dynamics, consumers are likely to benefit from lower prices. However, farmers in other producing countries will need support to maintain their competitiveness.
Source:
_Indian Ministry of Commerce_
_Pakistan Ministry of Commerce_
_US Department of Agriculture_