India reported on the 21st, citing sources, that if tensions in the Red Sea cannot be improved, India may consider adjusting some shipping routes for exporting rice, and the industry is worried that the increase in transportation costs may push international rice
Recently, India's Ministry of Commerce** has held a meeting with basmati rice exporters to discuss the risks they face in transporting their goods across the Red Sea. While there is no impact at the moment, if the risk persists, basmati rice exporters will also choose to take a detour to transport goods to Europe and Africa, which could increase costs by 15 to 20 per cent and ultimately be reflected in rice**.
Due to concerns about the supply and demand of rice in the international market, Asian rice prices hit a 15-year high on the 20th after August this year, and according to the Thai Rice Exporters Association, the 5% crushing rate of Thai white rice, which is the benchmark in Asia, was 2 percent higher than the previous week5% to US$650 per tonne, the highest level since October 2008. India is the world's largest exporter of rice, exporting about 40% of the world's rice** in 2022. India currently bans the export of rice other than basmati and parboiled rice, and also imposes a 20% tariff on parboiled rice exports. As of October this year, the export value of basmati rice has reached 3 billion US dollars, or about 21.4 billion yuan.
*: CCTV Finance & Economics.
*: Economic Information Daily.