Fitch: Rice prices could rise further

Global rice markets may come under further pressure as the world’s top rice producer, China, faces risks of heavy rain and flooding.

Fitch Ratings recently wrote a report on world rice prices. “Heavy rains, which will reduce yields in China’s grain-producing northeastern region, will put upward pressure on already high world rice prices,” the report said.

THE GREATEST DISASTER OF RECENT YEARS

China has been dealing with the problems created by the devastating floods in recent weeks. While Typhoon Dokuzuri was one of the worst disasters north China has seen in recent years, the capital Beijing was hit with the heaviest rains in 140 years.

According to the report, China, the world’s largest rice producer, raised flood warning levels in the three provinces of Inner Mongolia, Jilin and Heilongjiang, where 23 percent of rice production is produced.

DAMAGE NOT CLEAR

The credit rating agency stated that many important grain-producing areas in these three regions were affected by heavy rains and typhoon Dokusuri, stating that yield in damaged grain fields will decline, but the exact extent is unclear. of the damage.

Fitch said the country may have to try to import more rice if its own crop is insufficient, which could further boost global rice prices.

AT THE TOP OF THE LAST 12 YEARS

According to the Food and Agriculture Organization of the United Nations Rice Price Index, world rice prices had reached the highest level in the last 12 years.

On the other hand, he expects rice prices to rise further, as India banned non-basmati white rice exports last month and Thailand urged farmers to plant less rice to save water.