It's impossible to ignore; wherever you turn rice is hitting
the headlines and although the degree of the crisis differs
wildly per article one thing seems clear - prices are high
and stocks are low.
As the rice experts we want to fill you in on the facts,
reassure you on our position and most importantly let you
know how this affects you, our customer.
Key factors impacting on the rice crisis:
- People - the population of India is
becoming more affluent and turning to more premium rice
types like Basmati for its meals.
- Consumption - of food globally has
outstripped supply for the past five years. This has eroded
rice stock levels, which are now at the lowest level ever
recorded, as a proportion of production.
- Indian economy - is booming and hence
the Rupee has become a stronger currency on the world
market.
- Food commodities - will be in even
greater demand over the coming years, with a further estimated
billion mouths to feed by 2020.
- Increasing urbanisation - particularly
in India and China, is also fuelling consumer demand for
food at the same time as farmland is being reduced.
- Biofuels - land set aside for rice
is now being used to grow biofuels.
- Soaring land values - in the India
states of Punjab and Haryana, are having a direct negative
impact on Basmati production as farmers are realising
they can make more money by selling the land for development.
- Transportation - high oil prices and poor availability of vessels has seen freight costs rise by as much as 150%.
The diagram below demonstrates the factors influencing
the price increase in Basmati:
All of the above factors are pushing up the price of Basmati,
but rest assured, thanks to the long-term, close relationships
we have with the farmers, Tilda is best placed to continue
to provide you with high-quality rice so you can continue
to give your customers the best.
