{"id":123790,"date":"2023-06-17T12:53:42","date_gmt":"2023-06-17T12:53:42","guid":{"rendered":"https:\/\/yogaesoteric.net\/?p=123790"},"modified":"2023-06-17T12:53:42","modified_gmt":"2023-06-17T12:53:42","slug":"global-rice-shortage-looms-set-to-be-the-biggest-in-decades","status":"publish","type":"post","link":"https:\/\/yogaesoteric.net\/en\/global-rice-shortage-looms-set-to-be-the-biggest-in-decades\/","title":{"rendered":"Global Rice Shortage Looms, Set To Be the Biggest In Decades"},"content":{"rendered":"

Rice is the primary food source for over half of the global population, especially in emerging markets, where it plays a crucial role in feeding people. A new report reveals that rice production this year could be at its lowest in decades.<\/p>\n

\"\"<\/p>\n

A report by Fitch Solutions forecasts this year\u2019s global rice production will log its biggest shortfall in two decades. The deficit will be a major headache for countries relying on grain imports.<\/p>\n

\u201cAt the global level, the most evident impact of the global rice deficit has been, and still is, decade-high rice prices<\/em>,\u201d Fitch Solutions\u2019 commodities analyst Charles Hart told CNBC<\/em><\/a>.<\/p>\n

Sliding rice production in China, the US, and Europe is already causing grain prices to increase for 3.5 billion people, particularly in the Asia-Pacific region \u2014 this region of the world accounts for 90% of the world\u2019s rice consumption.<\/p>\n

\u201cGiven that rice is the staple food commodity across multiple markets in Asia, prices are a major determinant of food price inflation and food security, particularly for the poorest households<\/em>,\u201d Hart said.<\/p>\n

Hart said this year\u2019s global shortfall would be around 8.7 million tons, the largest global rice deficit since 2003\/2004 of 18.6 million.<\/p>\n

As a result of tightening global supplies, rough rice futures trading on the CBoT recently peaked at $18 per cwt, the highest level since September 2008. Cwt is a unit of measurement for certain commodities such as rice.<\/p>\n

\"\"<\/p>\n

CNBC<\/em> provides a breakdown of why rice supplies are strained:<\/p>\n

\u201cThere\u2019s a short supply of rice as a result of the ongoing war in Ukraine, as well as bad weather in rice-producing economies like China and Pakistan.<\/em><\/p>\n

In the second half of last year, swaths of farmland in the world\u2019s largest rice producer China were plagued by heavy summer monsoon rains and floods.<\/em><\/p>\n

The accumulated rainfall in the country\u2019s Guangxi and Guangdong province, China\u2019s major hubs of rice production, was the second highest in at least 20 years, according to agriculture analytics company Gro Intelligence.<\/em><\/p>\n

Similarly, Pakistan \u2014 which represents 7.6% of global rice trade \u2014 saw annual production plunge 31% year-on-year due to severe flooding last year, said the US Department of Agriculture (USDA), labeling the impact as \u2018even worse than initially expected.\u2019<\/em><\/p>\n

The shortfall is partly due to result of \u2018an annual deterioration in the Mainland Chinese harvest caused by intense heat and drought as well as the impact of severe flooding in Pakistan,\u2019 Hart pointed out.<\/em><\/p>\n

Rice is a vulnerable crop, and has the highest probability of simultaneous crop loss during an El Nino event, according to a scientific study<\/em>.\u201d<\/p>\n

The takeaway is that a tight global rice market will raise food inflation for major rice importers such as Indonesia, the Philippines, Malaysia, and Africa. Elevated food inflation is dangerous for governments because it increases social instability risks.<\/p>\n

 <\/p>\n

yogaesoteric
\nJune 17, 2023<\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Rice is the primary food source for over half of the global population, especially in emerging markets, where it plays a crucial role in feeding people. A new report reveals that rice production this year could be at its lowest in decades. A report by Fitch Solutions forecasts this year\u2019s global rice production will log […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1093],"tags":[],"class_list":["post-123790","post","type-post","status-publish","format-standard","hentry","category-censored-news-social-5127-en-censored-sensational-news-3480-en"],"_links":{"self":[{"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/posts\/123790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/comments?post=123790"}],"version-history":[{"count":1,"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/posts\/123790\/revisions"}],"predecessor-version":[{"id":123797,"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/posts\/123790\/revisions\/123797"}],"wp:attachment":[{"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/media?parent=123790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/categories?post=123790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yogaesoteric.net\/en\/wp-json\/wp\/v2\/tags?post=123790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}