ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Asia's rice squeeze after India export ban: 4 things to know

Market turmoil, government action, inflation jitters follow supply fears

A vendor sells rice at a store in Quezon City, the Philippines, on Aug. 14. Countries everywhere are scrambling to secure rice after a partial ban on exports by India cut supplies by roughly a fifth.   © AP

TOKYO -- India's decision last month to ban exports of rice sent shock waves through the Asian market for the staple food, inflating August prices by nearly 10% to a 15-year high, according to the U.N. Food and Agriculture Organization's All Rice Price Index.

Asia produces and consumes 90% of the global supply of the grain, and the region's governments have braced for inflation and supply concerns in a trade already hit by extreme weather and fertilizer shortages. The Philippines imposed a cap on rice prices at the start of September and soon after said it might review rice import tariffs as rising costs for the carbohydrate disproportionately affect poor households.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more