By Tyler Durden | 6 August 2022
ZERO HEDGE — The effects of elevated food prices have rippled worldwide and forced governments to impose price controls and trade restrictions. Price increases are due to supply constraints driven by several variables, including high energy prices, geopolitics, and weather. Ukraine restarted maritime transport of crops to the rest of the world, forcing grain prices to slip, though the food crisis is far from over.
We pointed out in April that the next challenge for the global food supply could be a plunge in rice production (read: here). Fast forward months later, and our suspicions appear to be right as India, the world’s largest rice exporter, has seen planting areas of the crop decline by 13% due to heatwaves and drought.
India accounts for 40% of the global rice trade, and a decline in production will complicate India’s domestic inflation fight. It could result in export restrictions, leading to few supplies for the rest of the world. […]
Where I live availability of rice has been limited for some months, and it is now about 25% more expensive.