Reduction in rice exports from India

The US Department of Agriculture in a September review lowered its estimate of rice exports from India next year to 17.5 million tons from 19 million tons in the August forecast. This year, exports are expected to amount to 20 million tons.

World rice prices have soared to 15-year highs amid export restrictions imposed by India, the world's largest rice exporter, the US Department of Agriculture notes. In July, the country introduced a ban on the export of most varieties of rice, followed by an export duty on parboiled rice and a minimum export price on basmati. Importers switched to other major suppliers, Thailand and Vietnam, sending their export prices to their highest levels since 2008.

Despite the significant increase in export prices, they have not reached the record levels of 2008, as export restrictions are less stringent this time. In addition, Vietnam, which stopped exports in 2008, is now continuing supplies.

According to the forecast of the US Department of Agriculture, world rice exports this year will amount to 53.11 million tons (56.12 million tons last year). Next year, supplies could fall to 52.1 million tons (the forecast was lowered from 53 million tons, according to an August estimate).