Europe has a rice season but rice prices are still high

French daily Le Monde said that European rice growers were able to smile brightly when they saw rice flowers laden with seeds in their fields. World rice reserves at the end of the 2023-2024 crop year are expected to peak at 198.5 million tons, a level never reached to date.

However, according to observations of French economist Laurence Girard, the world market is still hot, rice prices are still high and tensions have not yet subsided.

The world has no shortage of rice because global reserves at the end of the 2023-2024 crop year are expected to reach an unprecedented high of 198.5 million tons. Granaries are full thanks to an expected increase in output to 523 million tons, according to estimates released in early July by the Food and Agriculture Organization of the United Nations (FAO).

The rice crop in France is considered to be a bumper crop when the rice plants heavy with cotton are ripening in the fields. The harvesters will be operational by the end of September and are expected to collect nearly 80,000 tonnes. This is a significant output produced on an area that has been reduced to just 12,000 hectares. This precious French rice variety has a geographical indication protection certificate (IGP) under the brand “Camargue rice”.

In Spain, the land of paella rice, the fields of this rice variety have been expanded, but due to the impact of drought this summer, the harvest is not as expected. In contrast, heavy rains facilitated the growth of cereals in Italy, providing a bountiful harvest not only for wheat but also for rice.

Although Europe has a rice season, prices do not tend to decrease, even increase. Explaining this reason, Mr. Bertrand Mazel, President of the French Rice Growers Union, said: “Rice production in Europe this year will reach nearly 3 million tons, but consumption will be up to nearly 4 million tons. “.

The failure of supply to meet demand will cause rice prices in the world market to remain high. Therefore, farmers can be excited when their rice grains are always priced. Mr. Mazel pointed out: “In the Vercelle rice market in Italy, the price of rice has remained at 600 euros / tonne since the beginning of the year, compared to 400 euros / tonne 18 months ago.”

Beware of global food security
The soaring rice price in Europe is also a reflection of the warming of the world rice market. Wheat prices spiked after the Russia-Ukraine conflict indirectly affected rice.

Worried about the risk of supply shortage, many countries that consume a lot of these foods have sought to hoard rice. Therefore, while the price of wheat fell, the price of rice did not decrease, even increased. According to the FAO, rice prices in July even reached their highest level since 2011.

The rise in rice prices in the market was enough for India, worried to contain inflation ahead of an important election deadline, to ban exports of white rice, excluding basmati rice in July, further heating the world rice market. .

In August, the world’s top rice exporter, which accounts for 40% of the global volume, “adds fuel to the fire of speculation”, by enacting taxes and restrictions on other types of rice. Even when Myanmar and Cambodia, with three harvests a year, open their doors to “discharge”, tensions remain high.

Need to be wary of global food security. That is the warning of economists. Especially in many African countries, where broken rice is popular and consumed on average 70 kg/person/year, the price of rice is still potentially risky.

Leave a Reply

Your email address will not be published. Required fields are marked *