Coronavirus Updates, Trading Of Rice And Price Rises.
Rice is the main food in Asian countries. Recently, its prices get over 5-year highs because of the COVID-19 pandemic. The sectors of agriculture and trading are not in a better off position. This is because exporters restricting shipments to other countries and importers are building up stocks of the product.
According to the TREA, the value of over 4% broken white rice inclined over 11% as of late last month. The prices of the grain are at a peak since 2013.
Reasons for Price Increase.
The value of rice began rising in 2019 due to a lack of rain in Thailand and better demand from importers.
Vietnam and India are facing export problems for rice. For example, India is under a 21-day lockdown and its boundaries are not open for imports and exports for the time being.
Production Of Rice in Asia,
The continent produces over 85% of the globe’s supply. It consumes about 90% of the grain since it’s the staple food in most of the Asian countries. The traders in India halted engaging in new agreements as some are struggling to deliver the initial export agreements before the epidemic begun in the continent.
The situation in Vietnam is worse since the government has put restrictions on exports. Thailand is second in line and front of Vietnam as a world exporter after India, which is the leading exporter.
Thai Rice Exporters Association And Effects Of Labor Shortage.
The organization assures its consumers that the grain stocks are just enough. It recognizes challenges in acquiring workers in the middle of the outbreak. This brings about labor shortages as even the Cambodian workers go to their homes because of a lockdown. The laborers may also be observing social distancing since no worker would want to get sick while working in the paddy fields.
As a result of few workers available, seasonal farming work may be a challenge and in turn affect ahead of time abundant harvests. Some regions are in the harvest time for wheat, potatoes, fruits, and vegetables, and farmers want refugee laborers. This is because they help in operating machines and do manual jobs.
However, because of the restrictions laid obtaining the migrant workers might pose a challenge to the farmers, therefore, having a labor shortage.
Mohanty says, “Unlike other sectors, agriculture is not in a good position because of the timing of the lockdown rather than the period. If planting season does not happen, there will be no crop for the season or the whole year.”
Price Chaos On The Side Of Wheat And Advice From The Food Industries To Countries.
Wheat is used in the manufacture of bread and pasta. Just like rice, its prices are also increasing. The value of wheat escalated over 12% in March.
This was because of consumers buying in anxiety and crop fear to come from lockdowns in Europe. Food industry societies and groups are encouraging states to maintain trading activities.
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