UK rice importers have begun stockpiling amid concerns global export bans could disrupt supply.
India, Vietnam and Cambodia have all reduced rice exports in the past week as they seek to ensure their own populations remain fed.
There is currently no shortage of rice either in the UK or globally, but there are fears supplies could become stretched if more countries impose restrictions, according to the UK Rice Association.
“Certainly the businesses involved in importing rice are trying to move goods forward in their supply chain and build a buffer against that kind of interruption,” said its director Alex Waugh.
Tilda spokesman Jon Calland said: “We have rice on the way and we are restocking our customers.” Reports of Vietnam relaxing its ban could be a sign of improvement, he added.
He declined to comment on whether Tilda had increased its stock in the UK year on year.
Rice prices surged following the coronavirus outbreak as a combination of global export restrictions, customer stockpiling and currency fluctuations created upheaval in global markets.
“[Export restrictions] are creating shortages where effectively there are none because you interrupt a supply chain,” said Waugh.
Buyers’ concerns over the future availability of rice helped push prices up 9% to $14.04 per CWT between the start of February and the end March [Chicago Rabobank].
For UK buyers, prices could be an additional 10% higher due to the devalued pound, Waugh claimed.
It comes as Maximo Torero, chief economist of the UN Food and Agriculture Organisation, warned this week that protectionist measures could lead to global food shortages, in an interview with the Guardian.
And it’s not just rice supplies there are worries around.
Kazakhstan introduced an export ban on wheat flour last week, concerning markets that key exporters such as Russia, Ukraine or Argentina would follow suit. Global wheat prices jumped 12% in the final two weeks of March to €196.25 per tonne [Paris AHDB].
“There are concerns about further shutdowns and delayed logistics,” said Michael Magdowitz, commodity analyst at Rabobank.
Although the UK is largely self-sufficient in wheat with only minimal volumes imported from Europe and the US, global movements remain a major factor in British prices.
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