African nations begin to stock up rice on El Nino fears, Ukraine and Iran wars
African countries are increasing rice purchases from India to build reserves amid El Niño and geopolitical risks, lifting Indian rice prices by 20% in recent months. Exporters report strong demand and vessel congestion, with 20 ships anchored at Kakinada capable of carrying around six lakh tonnes.
African countries are building rice inventories to face any challenge that a severe El Nino and the geopolitical situation could pose by buying more of the cereal from India. This has lifted rice prices in the global market, with Indian rice prices increasing by 20 per cent over the past few months.
“African nations are buying more to create a buffer. I have never seen a situation like now, when 20 vessels have anchored at one time in Kakinada that can ship six lakh tonnes,” said New Delhi-based exporter Rajesh Paharia Jain.
“Ships are waiting to lift rice in almost all ports. There are two reasons. One is El Nino. The other is the Ukraine and Iran wars. Fears of food security have gripped the world. Some countries are buying double the quantity they usually purchase,” said Suraj Agarwal, Vice-President (West Bengal), Indian Rice Exporters Federation.
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Source : The Hindu Businessline
