India's Rice Export Restrictions Affects Asia, Africa
2023-08-28
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1India's decision to halt some rice exports to prevent high prices at home has had affects stretching across Asia to Africa, observers say.
2Rice prices in Kenya, for example, jumped when Russia invaded Ukraine.
3Russia is a big producer of fertilizer.
4That problem combined with years of little rain in the Horn of Africa hurt East Africa's rice production.
5Low-cost rice from India helped fill Africa's needs, feeding hundreds of thousands of people who live in poor areas of Nairobi on less than $2 a day.
6But the price of a 25-kilogram container of rice in Kenya has risen by more than 12 percent, or more than $14 since June.
7Importers there say they have not received shipments from India.
8Fifty-one-year-old Francis Ndege has been selling rice to the poor in Nairobi for 30 years.
9He said, "I'm really hoping the imports keep coming."
10Cutting food exports is part of India's effort to keep prices at home low to prevent widespread public anger at the government.
11The restrictions, however, take 9.5 million metric tons off the worldwide market.
12That is about a fifth of rice exports worldwide.
13In addition to India's moves, the Associated Press reports that Vietnam's rice export prices have reached a 15 year high.
14And Russia, which had earlier agreed to permitted agricultural exports from Ukraine, withdrew a United Nations-supported deal last month.
15Beau Damen works with natural resources in Bangkok for the U.N. Food and Agriculture Organization.
16He said the world is at an "inflection point."
17Even before India restricted rice exports, countries were buying rice with the expectation that supplies would soon be limited.
18Some observers worry that other nations will follow India.
19The AP reports that the United Arab Emirates has suspended rice exports to preserve supplies although it is not a supplier.
20Other observers worry that bad weather will affect rice harvests.
21They are saying the El Niño ocean event could affect harvests in many countries.
22El Niño is a warm southern Pacific Ocean current that affects weather across a large area of the world.
23It takes place regularly but is difficult to predict.
24In Africa, rice consumption has been growing regularly.
25Most countries depend heavily on imports.
26Some African nations with growing populations are trying to grow their own rice.
27But the results have not been what some had hoped.
28Amadou Khan is a 52-year-old unemployed father of five children in Dakar.
29He said his children eat rice with every meal except breakfast.
30He said his family is "just getting by."
31Seventy percent of Senegal's imported rice comes from India, but it is now too costly.
32So, Khan is buying rice grown at home which is two-thirds the price.
33Senegal's agriculture ministry said more than half of the country's demand is grown locally.
34The ministry said Senegal is not "far from being self-sufficient."
35Asian countries grow and use 90 percent of the world's rice.
36But even in Asia, some countries are struggling.
37The Philippines, for example, had an estimated 22 percent of its yearly production damaged by Typhoon Doksuri.
38The U.S. Department of Agriculture says the Philippines is the second largest rice importer after China.
39India's export restrictions and production problems blamed on the weather there make it an undependable export partner.
40That is what Ashok Gulati of the Indian Council for Research and International Economic relations said.
41He added, "That's not good for the export business because it takes years to develop these markets."
42Vietnam hopes to make gains during the current market movements. With prices high, it hopes to increase production.
43The Agriculture Ministry also wants to use more land in the Mekong Delta to grow rice.
44The Philippines is negotiating with Vietnam to get favorable prices.
45Vietnam also wants to target Britain, which gets rice from India.
46Thailand is another big rice producer. The government expects to export more rice this year than last.
47Exports in the first six months of 2023 were 15 percent higher than the same period last year.
48But the situation in India has farmers and traders worried.
49Charoen Laothamatas is president of the Thai Rice Exporters Association.
50He said farmers are raising prices for unmilled rice and mill operators, who process the rice, are unwilling to sell it.
51The millers want to get the best price under current market conditions.
52Lack of clarity about supplies leaves exporters unsure about prices and leads to an unwillingness to sell.
53As a result, Laothamatas noted, "No one wants to take the risk."
54I'm Dorothy Gundy. And I'm Mario Ritter, Jr.
1India's decision to halt some rice exports to prevent high prices at home has had affects stretching across Asia to Africa, observers say. 2Rice prices in Kenya, for example, jumped when Russia invaded Ukraine. Russia is a big producer of fertilizer. That problem combined with years of little rain in the Horn of Africa hurt East Africa's rice production. Low-cost rice from India helped fill Africa's needs, feeding hundreds of thousands of people who live in poor areas of Nairobi on less than $2 a day. 3But the price of a 25-kilogram container of rice in Kenya has risen by more than 12 percent, or more than $14 since June. Importers there say they have not received shipments from India. 4Fifty-one-year-old Francis Ndege has been selling rice to the poor in Nairobi for 30 years. He said, "I'm really hoping the imports keep coming." 5Cutting food exports is part of India's effort to keep prices at home low to prevent widespread public anger at the government. The restrictions, however, take 9.5 million metric tons off the worldwide market. That is about a fifth of rice exports worldwide. 6An inflection point 7In addition to India's moves, the Associated Press reports that Vietnam's rice export prices have reached a 15 year high. And Russia, which had earlier agreed to permitted agricultural exports from Ukraine, withdrew a United Nations-supported deal last month. 8Beau Damen works with natural resources in Bangkok for the U.N. Food and Agriculture Organization. He said the world is at an "inflection point." 9Even before India restricted rice exports, countries were buying rice with the expectation that supplies would soon be limited. 10Some observers worry that other nations will follow India. The AP reports that the United Arab Emirates has suspended rice exports to preserve supplies although it is not a supplier. Other observers worry that bad weather will affect rice harvests. They are saying the El Niño ocean event could affect harvests in many countries. 11El Niño is a warm southern Pacific Ocean current that affects weather across a large area of the world. It takes place regularly but is difficult to predict. 12Rice demand in Africa growing 13In Africa, rice consumption has been growing regularly. Most countries depend heavily on imports. Some African nations with growing populations are trying to grow their own rice. But the results have not been what some had hoped. 14Amadou Khan is a 52-year-old unemployed father of five children in Dakar. He said his children eat rice with every meal except breakfast. He said his family is "just getting by." 15Seventy percent of Senegal's imported rice comes from India, but it is now too costly. So, Khan is buying rice grown at home which is two-thirds the price. 16Senegal's agriculture ministry said more than half of the country's demand is grown locally. The ministry said Senegal is not "far from being self-sufficient." 17Asian countries grow and use 90 percent of the world's rice. But even in Asia, some countries are struggling. The Philippines, for example, had an estimated 22 percent of its yearly production damaged by Typhoon Doksuri. The U.S. Department of Agriculture says the Philippines is the second largest rice importer after China. 18'No one wants to take the risk' 19India's export restrictions and production problems blamed on the weather there make it an undependable export partner. That is what Ashok Gulati of the Indian Council for Research and International Economic relations said. He added, "That's not good for the export business because it takes years to develop these markets." 20Vietnam hopes to make gains during the current market movements. With prices high, it hopes to increase production. The Agriculture Ministry also wants to use more land in the Mekong Delta to grow rice. The Philippines is negotiating with Vietnam to get favorable prices. Vietnam also wants to target Britain, which gets rice from India. 21Thailand is another big rice producer. The government expects to export more rice this year than last. Exports in the first six months of 2023 were 15 percent higher than the same period last year. 22But the situation in India has farmers and traders worried. Charoen Laothamatas is president of the Thai Rice Exporters Association. He said farmers are raising prices for unmilled rice and mill operators, who process the rice, are unwilling to sell it. The millers want to get the best price under current market conditions. 23Lack of clarity about supplies leaves exporters unsure about prices and leads to an unwillingness to sell. 24As a result, Laothamatas noted, "No one wants to take the risk." 25I'm Dorothy Gundy. And I'm Mario Ritter, Jr. 26Mario Ritter, Jr. adapted this Associated Press report for VOA Learning English. 27____________________________________________________ 28Words in This Story 29inflection point -n. (math) the point where a process changes suddenly or in an important way 30consumption -n. the act of using or buying some product 31self-sufficient -adj. able to live or operate without assistance from others 32unmilled -adj. grain that is not processed with machinery to remove undesirable parts of the seed