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🦧 broken rice in asia
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🦧 broken rice in asia

Ape of Omaha
Sep 21, 2022
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🦧 broken rice in asia
www.wiseape.fyi

šŸ›ļø 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!

šŸ’” something im thinking about

doodles raised $54m in this crypto winter (click image)

that's all, folks šŸ’

 

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as always, i’m no financial advisor! (i’m no substitute for professional financial services)
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🦧 broken rice in asia
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