Rice market: no panic, its price remains rather stable
Rice prices should not rise despite the announcements of three large producers.
(Illustrative photo) RFI / Madjiasra Nako.
Text by: RFI Follow
1 min
What will back-to-school look like on market stalls?
Should we fear an increase in the price of rice and, in particular, broken rice which is widely consumed in West Africa, especially in Senegal?
The announcements made in recent days by three major Asian producers have so far had no impact.
The price of small white grain remains rather stable.
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When the world's leading rice exporter speaks out, it's usually not without consequences.
But since the Indian authorities announced that they could ban the export of broken rice – temporarily to satisfy local and regional demand from animal feed manufacturers – the market has not caught fire.
The other announcement, this week, of an alliance between two big producers, Thailand and Vietnam, to push up prices (pulled down by India), had no impact either lessons.
Previous initiatives to create a rice cartel have not been very successful and, whatever these two countries decide, since India exports 40% of the rice traded on the planet, it is India that makes market prices.
These declarations from Asia, potentially worrying for importing countries and especially those in Africa, should therefore be put into perspective.
While economists do not rule out price disruptions, they remain cautious for the time being, especially since wheat prices have come down this summer after soaring in the spring.
As a result, the pressure on other grains has diminished and their prices should in theory feel the effects.
►Also read: Africa always more greedy in imported rice
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