World to face global rice shortage in the next 20 years; here's why

From sushi to biryani, rice has always been a primary staple food for more than half of the world's population but according to industry analysts, the global market for rice could face its biggest shortage in decades.

Production of rice is dropping and the industry is expected to experience its largest deficit between supply and demand in 20 years, according to Fitch Solutions, a credit ratings agency recognized by the U.S. Securities and Exchange Commission.

Why is there a rice shortage?

There’s a short supply of rice as a result of the ongoing war in Ukraine, as well as bad weather in rice-producing economies like China and Pakistan.

According to Kelly Goughary, senior research analyst at Gro Intelligence said China is the largest rice and wheat producer in the world and is currently experiencing the highest level of drought in its rice growing regions in over two decades.

Meanwhile, Pakistan witnessed a 31 per cent decrease in its rice output compared to last year because of severe flooding.

Coming home, India’s Meteorological Department expects the country to receive “normal” monsoon rainfall, forecasts for intense heat and heat waves through the second and third quarters of 2023 continue to pose a threat to India’s wheat harvest, the report cautioned.

Which all countries be impacted?

Many countries will also be forced to draw down their domestic stockpiles, said Goughary. Analysts further added that countries most affected by the deficit would be those already suffering from high domestic food prices inflation such as Pakistan, Turkey, Syria and some African countries.