Global Rice Production To Have Largest Shortfall In Decades

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Commodities analyst Charles Hart of Fitch Solutions says that global rice production this year will be at its lowest in almost two decades. Rice is the primary food source for over half the global population and the shortage will affect millions of people, especially in Asia and the Pacific which accounts for 90% of rice consumption.  Prices have already risen to about $18 per cwt, the highest since September 2008.  Rainfall in China’s Guangxi and Guangdong provinces, major rice growers, was at a 20 year high causing major crop loss. Severe flooding in Pakistan, responsible for about 7.6% of the global rice trade, also caused up to a 31% crop loss. Combined with the war in Ukraine, the takeaway is that for countries who depend on food imports like many countries in Africa, they can expect to see an even greater food price increase.