Rice has become one of the hike champions around the world during the corona virus outbreak. On the one hand, people’s stocks of rice due to quarantine, and on the other hand, damage to the paddy fields of bad weather caused the price of the product to skyrocket. According to the news in the Wall Street Journalrice prices have reached their highest level since November 2011. 47 percent increase over the past two weeks
PRODUCTION INCREASED BY 17 PERCENT IN THE USA
According to Nielsen’s data, rice prices increased by 40 percent compared to the same period last year in the 13-week period ended on May 30. According to the data of the US Department of Agriculture (USDA), rice production in the country decreased by 17 percent in 2019 to approximately 8 million 900 thousand tons. The reason for this is that crops are damaged due to heavy rains in Arkansas, Missouri, Mississippi, Louisiana and Texas states where rice, soy and corn fields are concentrated. As the weather conditions go well this spring, rice production in the USA is expected to increase by about 20 percent in the coming period and prices will decrease.
MUSON SEASONS APPROACH IN ASIA
The situation is no different in Asia, the continent where rice is produced and consumed the most. However, the production was drought, not drought. According to the Thai Rice Exporters Association, the cost of 1 ton of rice has reached $ 1133 due to the drought in Thailand. The monsoon season in Southeast Asia between July and September may raise prices further. Monsoon rains will affect large producers such as India, Indonesia, Thailand and Vietnam.
EXPECTATION OF 2020: 500 MILLION TONS OF RECORD PRODUCTION
“Exports have slowed down due to the corona virus outbreak in India, the world’s second largest rice producer,” the US Department of Agriculture said. There are 50 to 60 percent shipping container shortages at the ports. This resulted in an increase of 32 percent in freight costs. The developments experienced damaged rice exporters who could not find containers to send their rice. ” Despite this, expectations for 2020 are good. The US Department of Agriculture estimates that rice production will reach a record level of 500 million tons this year.