Chinese
villagers
growing
rice
seedlings
in
a
paddy
field
in
Qiandongnan,
Guizhou
Province,
China
on
April
2023.
Future
Publishing
|
Future
Publishing
|
Getty
Images
Global
rice
markets
could
come
under
further
strain
as
the
world’s
leading
rice
producer
China
grapples
with
heavy
rain
and
flood
risks.
“Heavy
rain
in
China’s
grain-producing
north-eastern
region
that
will
reduce
yields
is
likely
to
put
upward
pressure
on
already
high
global
rice
prices,”
Fitch
Ratings
said
in
a
recent
report.
China
is
the
world’s
largest
producer
of
rice,
and
flood
alert
levels
were
raised
for
three
provinces
that
account
for
23%
of
the
country’s
rice
output:
Inner
Mongolia,
Jilin
and
Heilongjiang,
the
report
pointed
out.
The
world’s
second
largest
economy
has
been
inundated
by
devastating
floods
in
recent
weeks.
Typhoon
Doksuri
was
one
of
the
worst
storms
to
hit
northern
China
in
years,
with
capital
Beijing
battered
by
the
heaviest
rainfall
in
140
years.
Fitch
pointed
out
that
many
key
grain
production
areas
in
those
three
provinces
were
affected
by
heavy
rains
and
remnants
of
Typhoon
Doksuri,
and
they’re
set
to
face
“another
deluge
as
Typhoon
Khanun
moves
north.”
watch
now
The
resulting
soaked
grain
fields
will
reduce
crop
yields
for
the
year,
the
Fitch
report
stated,
although
the
full
extent
of
the
damage
is
not
yet
clear.
“This
will
lift
China’s
domestic
grain
prices
and
likely
drive
higher
imports
in
2H23
to
partially
offset
the
potential
yield
loss,”
the
credit
ratings
firm
said,
adding
the
country
may
need
to
look
to
import
more
rice
if
its
own
harvests
fall
short,
and
that
could
drive
global
rice
prices
even
higher.
Global
rice
prices
have
surged
to
their
highest
in
close
to
12
years,
according
to
the
Food
and
Agriculture
Organization
All
Rice
Price
Index.
Other
market
watchers
are
estimating
higher
rice
prices
ahead
after
India
banned
non-basmati
white
rice
exports
last
month,
and
Thailand
urged
farmers
to
plant
less
rice
in
a
bid
to
save
water
as
a
result
of
low
rainfall.
India,
which
accounts
for
more
than
40%
of
global
rice
trade,
banned
exports
of
non-basmati
white
rice
on
July
20,
as
the
government
looked
to
tackle
soaring
domestic
food
prices.
Rice
prices
are
hovering
at
decade
highs,
with rough
rice
futures
last
trading
at
$15.98
per
hundredweight
(cwt).
In
addition
to
rice,
the
Fitch
report
also
cited
corn
and
soybean
among
major
crops
grown
in
Inner
Mongolia,
Jilin
and
Heilongjiang,
which
will
be
impacted
by
flood
risks.
China
is
expected
to
import
more
of
both
grains
this
year
compared
to
the
last.
