Rice could emerge as the next challenge for global food supply as a shortage of rain in parts of India, by far the world¡¯s biggest exporter, has caused planting area to shrink to the smallest in about three years.
The threat to India¡¯s rice production comes at a time when countries are grappling with soaring food costs and rampant inflation. Total rice planted area has declined 13% so far this season due to a lack of rainfall in some areas, including West Bengal and Uttar Pradesh, which account for a quarter of India¡¯s output.
Traders are worried that a drop in rice production will complicate India¡¯s inflation fight and trigger restrictions on exports. Such a move will have far-reaching implications for the billions of people that depend on the staple. India accounts for 40% of global rice trade, and the government has already curbed wheat and sugar exports to safeguard food security and control local prices.
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