7/13/22, 1:17 PM Rice faces squeeze on higher fertilizer costs and booming demand - The Economic Times

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Business News › News › Economy › Agriculture › Rice faces squeeze on higher fertilizer costs and booming demand

Breaking News: Rupee hits record low for a third straight session

Rice faces squeeze on higher fertilizer costs and

booming demand
Bloomberg Last Updated: Jul 10, 2022, 10:02 AM IST
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Synopsis

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Much is riding on the rice crop in India, which ships about 40% of the world’s exports of

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the staple. “Global supply is at risk, but for now we still have massive Indian availability
that is reining in prices,” said V. Subramanian, vice president at The Rice Trader, a

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researcher and conference organizer.

Rice production is under threat in

Finance
parts of Asia from higher fertilizer costs
at a time when demand is increasing,
posing a potential risk to food security

Fixed
and efforts to contain inflation.

Crop yields may decline in Thailand,

the world’s second-largest exporter,
because of elevated prices for crop
nutrients, according to a research unit of Kasikornbank Pcl, while in the
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Philippines, the No. 2 importing country, a lower harvest is likely to increase
Bajaj Finance
the need for overseas purchases. China’s worried about the crop impact of
pests, while India’s output depends on a good monsoon.

Most of the world’s rice is grown and eaten in Asia, making it vital for political
and economic stability in the region. In contrast to the surge in wheat and Book Now
corn prices after Russia’s invasion of Ukraine, rice has been subdued, but there
is no guarantee it will remain so. Back in 2008, prices soared above $1,000 a
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7/13/22, 1:17 PM Rice faces squeeze on higher fertilizer costs and booming demand - The Economic Times

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While wheat, corn and cooking oils have surrendered much of this year’s gains
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because of an improved outlook for supplies, farm production is clearly
dependent ultimately on the weather, which is becoming more erratic as a
result of climate change. Any fresh surge in wheat and corn costs will TOP TRENDING NEWS

inevitably reignite demand for rice for food and livestock feed.

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Much is riding on the rice crop in India, which ships about 40% of the world’s
exports of the staple. “Global supply is at risk, but for now we still have
massive Indian availability that is reining in prices,” said V. Subramanian, vice
Popular in Economy
president at The Rice Trader, a researcher and conference organizer.

1. Centre allays concerns over
$620.7 bn external debt, says
India has already limited wheat exports, which the world was counting on to its share only 21%

ease tight supplies, saying its food security was under threat. There’s concern
that rice may be next on the list, though the prospects for that depend on the 2. RBI allows payments for
cross-border trade in rupee,
monsoon rains and harvest this season. So far the monsoon is progressing move to benefit trade with
normally. Russia

For now, India’s rice exports are helping to ease any supply tightness in the
3. PM Gati Shakti: A game
changer to achieve $20-
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region. The Kasikorn Research Center in Thailand said record fertilizer prices
after Russia’s invasion of Ukraine were a turning point for farmers in the
country, and that lower application of crop nutrients will cut yields at a time 4. India’s 1st elevated urban
expressway to be operational
of rising overseas demand. by 2023; here are 10 points

The Philippines expects its rice harvest to drop this year because of more
5. India's interests
expensive fertilizer. The government is also worried about soaring food compromised by huge edible
oil imports, imperative to
inflation, including the cost of rice, especially for lower-income households become self-reliant
who spend about 16% of their budget on the staple grain.

China, the largest rice grower, has warned of a higher incidence of pests and
diseases in its crop this year, with some provinces reporting an almost 10%
increase in the area affected. Vietnam, a top shipper, said high freight and
production costs are challenges, even as exports rose in the first half.

“Looking at the current situation, India is acting as an anchor for prices with

https://economictimes.indiatimes.com/news/economy/agriculture/rice-faces-squeeze-on-higher-fertilizer-costs-and-booming-demand/articleshow/… 2/5
7/13/22, 1:17 PM Rice faces squeeze on higher fertilizer costs and booming demand - The Economic Times

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its large exports,” said The Rice Trader’s Subramanian.
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4 COMMENTS ON THIS STORY

Most Popular Opinion
Raj Sharlan 2 days ago
1. BJP 2.0: A party with a difference
Punjab should acquire agri Land in Canada and USA to cultivate rice for By Pranab Dhal Samanta
feeding Asian minor

Pratyay Bhaumik 2 days ago 2. Why India should become hydro hub
By Amitabh Kant
Farmers are again the real saviours of India and not any other industries and
even all industries taken together. No one can reduce the importance of
German ammonia synthesis artificially which have driven agricultural boom 3. Vaxx, testing, vaxx, testing...
which could support humanity against hunger. I always sound odd because
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Gaurav Sharma 3 days ago

Nice Article

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