After three weeks of decline, the rice market has begun to climb again. This grieves those who are looking forward to a temporary calm that lasts longer. In West Africa, the current rice harvest situation is optimistic. But the continent still relies on imports for 40% of its needs. This is one of the new topics that will be available online this week on the French programme Chronique des Matières Premières. Indian rice is difficult to replace, and the market** remains high, worrying West African consumers. This will prompt African countries to stop their dependence on imports and give preference to local production.
The French website of Radio France (RFI) was published on Wednesday, November 29, 2023Raw materialsColumn (chronique des matières premièresA report by journalist Marie-Pierre Olphand spurred an influx of orders for weeks. This quickly made the **flip and **go higher again.
-- Lack of affordable white Mickey in the market -
The calm will be short-term, as the problems in the market have not fundamentally changed for several months. There is too little affordable white rice available.
-- Strong demand in the rice market -
One proof of this is that Indonesia failed to buy the 1 million tonnes it needed a month ago. And only half. Moreover, the next tender will not necessarily be satisfied. Signs that the market is under pressure are that a week ago, Vietnamese rice surpassed Thai rice. An interlocutor from the economic correspondent of the French Broadcasting Corporation (RFI) told that this is almost unprecedented.
In this situation, importers use their stocks as much as possible and keep their purchases to a minimum. Indonesia, which had almost no purchases in 2022, may need to buy 2.8 million tonnes this year. Together with Malaysia and the Philippines, the market is already short of 5 million tonnes.
-- Increase in the amount of rice** in West Africa -
According to the agricultural information journal N'Kalo, the harvest in West Africa has now begun. Local rice will improve the market. The French Centre for International Cooperation in Agricultural Research and Development (CNRISD).cirad-Osiriz, a publication by Centre de Coopération Internationale en Recherche Agronomique Pour Le Développement, mentioned that production is expected to be optimistic. However, the continent is still dependent on imports for 40 per cent of its needs, making it extremely vulnerable to changes in international markets.
In the rice market, Indian rice is still the main product this year. New Delhi's decision to open up rice exports after a year of restricting rice exports has failed to make a real difference. One businessman pointed out that the relaxation measures are still limited and political, as they need to be approved.
-- Indian rice is difficult to substitute -
RFI Raw Materials Column (chronique des matières premièresThe article also mentioned that India's 20% tax hike on parboiled rice (riz étuvé) exports was supposed to end in October 2023. But New Delhi has decided to extend the period by five months. An expert in the industry pointed out that there are very few countries that can replace the Indian rice in the ** market. Both Thailand and Pakistan may be reaching the limits of their export capacity.