Trouble in world rice market when shipping from India is delayed in time for strong demand

The world rice market is struggling as the transportation of rice from major seaports is delayed due to a lack of containers at the right time when there is a trend in many countries around the world to increase their stockpiles of rice - one of the staples food. .

The difficulty in transporting rice shows that the Covid-19 pandemic is seriously affecting global trade in goods.

In India and Thailand - the two largest rice exporters in the world, slow delivery is taking place very seriously.

In India, the rice transportation is delayed by up to 4 weeks compared to before, according to the executive director of a leading rice trading company based in Singapore.

Thai rice exporters forecasts that rice exports in 2021 will continue to decline, after falling 28% in the first 11 months of 2020, mainly due to logistics problems (namely, lack of containers) and over prices. high compared to other competitors.

Meanwhile, the Covid-19 epidemic caused a "outbreak" in the demand for buying agricultural products, from rice to soybeans, corn, meat ... globally.

China, the largest rice consumer in the world, last December had to buy Indian rice for the first time in 3 decades. Vietnam is the third largest rice exporter in the world, but recently had to import Indian rice for the first time in decades.

Stephen Innes, director of global market strategy at brokerage Axi, said: "Global food hoarding trends have been around since the end of last year, and are not overheating now, and Vietnam is not out of business. Suddenly buying Indian rice shows how "sophisticated" the food supply chain is ".

However, according to the US Department of Agriculture, world rice stocks in 2020/21 are forecast to rise to an all-time high of 178.2 million tons, showing that the world rice market is heating up mainly because logistics and consumer-related issues buy mainly to hoard.

Director Innes said: "Based on information about world rice stocks, the current problems of the rice market are not so great. But the shortage of containers to transport rice and the delays at seaports. India is also very worrying ".

Rice prices in Thailand in April 2020 rose to their highest level since 2013 when India blockade the country to prevent the spread of Covid-19 virus (although India did not restrict exports at that time. rice). So far, Thai rice prices are still 19% higher than the same period last year, 5% broken rice is 513 USD / ton.

Similarly, Vietnamese rice of the same type last week also increased to USD 502.50 / ton (5% broken) due to lower export concerns amid tight supply ahead of the new harvest - peaking in February. / 2021.

That leaves buyers with little choice but to buy Indian rice - where the same type of rice costs only $ 384 / ton.

At Kakinada port in southeastern India, there are 20 ships waiting for loading and unloading.

Heanshu Agarwal, chief executive of Satyam Balajee - India's largest rice exporter - said there are currently no containers to transport the goods. Meanwhile, the limited area of ​​seaports causes congestion at Kakinada port.

Buyers of rice in Africa are likely to be the most affected by increased transportation costs combined with rising rice prices.

"They are mainly small buyers, buying rice from containers. The cost of transporting containers from India to Africa, depending on the country, has risen to 150 USD / ton, from 50 USD / ton anise. November, "said the rice trader in Singapore.

Even countries that often self-sufficiency nearly enough rice now also have to import, increasing pressure on demand.

Bangladesh's rice imports may rise to 2 million tons in the year ending June 2021, the highest level in the past three years, as domestic prices rise to an all-time high due to scarce supplies. Bangladesh is the world's third largest rice producer with an output of about 35 million tons, but only enough food for more than 160 million people.

Source: https://cafef.vn/rac-roi-tren-thi-truong-gao-the-gioi-khi-viec-van-chuyen-tu-an-do-cham-tre-dung-luc-nhu-cau-tang-manh-20210107112706544.chn