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🦧 broken rice in asia
🏛️ taking control
india is banning shipments of broken rice to control domestic rice prices
india accounts for ~40% of global rice shipments, to 150+ countries
india's rice exports were a record 21.5m tons in '21 – more than the next four biggest gain exporters combined (thailand, vietnam, pakistan, and the us)
india’s government also instituted a 20% export tax on other types of rice
why this time around tho?
production of rice india this year hasn't been all too great – as of a couple weeks ago, statistics showed a 5.6% YoY decrease, partly due to a below-average rainfall / monsoon
so, to control for the sudden rise in domestic rice price, india’s controlling how much rice leaves the nation
winners and losers
winners: thailand and vietnam are next on the list of the world’s biggest grain exporters
both countries haven’t showed decline in production or a weak production outcome so far this year, unlike india
losers: the countries that now have to import from thailand and vietnam, instead of india – phillipines, indonesia
not only are both countries already fighting high inflation and rising commodity prices, but both countries are known to have rice take up high shares of their food cpi’s
a lil’ blurb on commodities today – hopefully it was interesting!