With waning impact of covid-19, people had high hopes from the year 2022. Almost all expected the year to support recovery after the covid-19 pandemic wreaked havoc and disrupted lives in the last couple of years. However, the year drifted far away from people’s pre-conceived notions.
With the start of the year, the Russia-Ukraine war started and the war between the two biggest grain producers and exporters of the world threw up challenges that no one ever anticipated. Owing to Russia’s invasion of Ukraine, the key Ukrainian ports were blocked and as supplies were choked, the prices of essentials like food and fuel touched record levels.
While the disruptions made lives difficult for everyone in general, poor and developing countries struggled the most. The supply chain disruptions led to global grain shortage and owing to inflationary pressures which drove prices of commodities in the global market people had a hard time securing supplies for their basic needs.
However, India seems to have a different case this time around. Located in Asia, India is the largest rice exporter in the world and the country ranks second, behind China in terms of rice production. Favorable climatic conditions help the country export record volumes of rice to the world while maintaining adequate stocks for domestic consumption, but the situation seems to be a bit different this time.
Despite being the largest Rice Exporter and the second largest rice producer in the world, the prices of rice are on the rise in the domestic markets of India. As per statistics, the prices of rice have gone up by 15% in the span of a month, which have surprised commoners and experts alike.
Rice, Edible Oil Becoming Expensive In The Domestic Market
A quick look at the statistics reveal that prices of rice and edible oil have risen in the past one month.
As per data, palm oil has witnessed a rise of Rs 5- Rs 7 a litre in the last one month.
On the other hand, Basmati rice which costed around Rs 95 a Kg a month ago, now was selling at Rs 110 per Kg in the domestic markets.
Reason Behind Rising Prices Of Rice And Edible Oil
Traders and distributors cited that millers are holding up stocks as they believe that prices of basmati rice are going to increase further in the global markets, especially in the aftermath of devastating flood that has hampered the domestic crop production of Pakistan.
Talking about non-basmati rice, experts opined that drop in Kharif production, withdrawal of government run food security scheme and duty free paddy exports to Nepal have driven up prices of non-basmati rice in India.
Suraj Agarwal, CEO, Rice Villa Group, a rice marketing and exporting firm said that the prices are witnessing a rise in India while there are hardly any orders from Iran, which is the biggest market for Indian Basmati rice.
India is the second biggest rice producer and owing to high domestic output, the country holds a mammoth 40% share in the global rice trade. The Asian nation produces ample quantities of rice every year to meet its domestic needs and this is the reason why the prices of rice remains stable in the country.
However, the prices of rice have been rising in the past one month. According to data, prices of rice have gone up by 15%. Along with it, the prices of palm oil have also been increasing which have added to the anxiety of the people.
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