World facing largest rice shortage in 20 years: What's causing it, how badly will India be affected?

Around the world, rice production is falling. So much so that the world is facing its largest rice shortage in two decades, according to Fitch Solutions. CNBC quoted commodities analyst Charles Hart as saying, “At the global level, the most evident impact of the global rice deficit has been, and still is, decade-high rice prices.” But what’s behind the rice shortage? And how will India be affected? Let’s take a closer look: What’s happening? According to CNBC, the development comes as a result of poor weather in China, the world’s biggest ride producer, and Pakistan as well as the Ukraine war.

China in the latter part of 2022 saw heavy rain and flooding across vast tracts of farmland.

Agriculture analytics company Gro Intelligence pegged the rainfall in two major rice hubs – Guangxi and Guangdong – as the second highest in two decades. China in February began promoting Rice bran as the staple food amid the ongoing food shortage in the country, as since 2020, shortages have remained a significant issue for the Chinese masses, Geo Politik reported. The development of the rice bran industry in order to promote rice bran in the diet is essential for improving the nutrition and health of its people, and it will also help to promote food loss reduction, according to a notification published on the official website of China’s National Health Commission on 19 January. The website also noted that the National Rural Industry Development Plan (2020-2025) was created by the Ministry of Agriculture and Rural Affairs in 2020 to encourage the full usage of byproducts such as rice husks, rice bran, wheat bran, and others, Geo Politik reported. Notably, the outer layer of the rice is used to obtain the rice bran (Oryza sativa). The two main uses are to extract oil and feed it to animals. In addition to global warming, a major factor contributing to the growing food problem in China is the loss of agriculturally productive land as well. A fifth of the world’s population lives in China. However, it is estimated that only 11 per cent of the country’s land is what would be considered ideal for agriculture. The conflict between Russia and Ukraine also had a negative effect on the nation’s food supply system and has caused chaos. The COVID-induced disruption has aggravated an already serious situation on the food front. This predicament comes at a time when the race to industrialise in China has left it with a lop-sided development, with a shortage of arable land Meanwhile, Pakistan witnessed a 31 per cent decrease in its rice output compared to last year because of severe flooding. [caption id=“attachment_12445912” align=“alignnone” width=“640”] Pakistan saw vast tracts of land inundated due to sever flooding.[/caption] The US Department of Agriculture (USDA) said the scenario was “even worse than initially expected,” as per CNBC. Gru Intelligence noted that a couple of years of severe drought in western US states have brought down acreage in California. The United States, a major exporter, is predicted to see its output fall to the lowest level in three decades. What about India? India, usually the top exporter of rice in the world, in September banned broken rice exports,. New Delhi also imposed a 20 per cent duty on exports of certain other types of rice

However, despite those developments, India’s rice exports increased to a record 22.26 million tonnes last year.

That figure is more than the combined exports of Thailand, Vietnam, Pakistan and the United States – the world’s other largest exporters of rice. Speaking to CNBC, Satyam Balajee of Rice Industries said he does not foresee a problem and that costs are in hand. Balajee added that if Thailand and Vietnam have cultivation concerns then production may be impacted. He added that the company is exporting 5-10 vessels compared to 15-20 vessels last year. Talking about prices, he expects stable bearish rice prices in the next two to three months. ‘Millets healthier option’ In January External Affairs Minister S Jaishankar said millets are far healthier than rice and wheat one eats daily and offer a completely different value proposition at a time when there is a worry about a global food shortage. Jaishankar, addressing the members of the Indian diaspora here in the Austrian capital, said India can grow millets which offers a solution to the growing food demands across the globe. The government announced on 1 January it has lined up a series of millet-centric promotional activities across the country as the International Year of Millets (IYM) kicks in. “Today in a world where there is worry about food shortage, millet offers a completely different value proposition. In fact, today for almost every five kilos of wheat grown in India, one kilo of millets is grown and consumed,” he said. The UN’s declaration as IYM 2023 has been instrumental for India to be at the forefront in celebrating the millet year. Prime Minister Narendra Modi has also shared his vision to make IYM 2023 a “people’s movement” alongside positioning India as the “Global hub of millets”. The global millets market is projected to register a CAGR of 4.5 per cent between 2021-2026. With inputs from agencies Read all the  Latest News,  Trending News,  Cricket News,  Bollywood News, India News and  Entertainment News here. Follow us on  Facebook,  Twitter and  Instagram.