On August 4, the Food and Agriculture Organization of the United Nations (FAO) released its rice price index for July, which showed that rice prices rose 2.8% year-on-year and 19.7% year-on-year, hitting the highest level since September 2011, according to the FAO. FAO pointed out that the El Niño phenomenon led to a reduction in rice production, as well as export control measures taken by the countries concerned, will exacerbate the trend of higher food prices in many countries, and cause global food prices to continue to rise.

　　A number of countries announced a ban on rice exports, causing market concerns. on July 20, the Indian government announced that in order to safeguard the supply of the domestic market, it would ban the export of rice, except steamed grain rice and Indian fragrant rice, effective immediately. India's Ministry of Consumer Affairs, Food and Public Distribution issued an announcement that the strong monsoon rains caused serious damage to crops, rice retail prices rose 3% in a month after the government decided to implement rice export restrictions. Since October 2022, domestic rice prices in India have risen by more than 30%.

　　India is an important rice exporter in the world, accounting for more than 40% of world rice exports, and India's total rice exports in 2022 will be about 22 million tons, exceeding the total of the four largest rice exporters, Thailand, Vietnam, Pakistan and the United States. The affected rice exports of about 10 million tons, India's latest rice export ban, will undoubtedly give the recent price tends to be relatively stable world food market to bring a new impact.

　　Data from the International Food Policy Research Institute (IFPRI) show that since September 2022, global rice market prices have risen by 15% to 20%. Over the last 15 years, India has become the world's largest rice exporter. Any movement in India's rice production and exports is likely to cause reactions and volatility in the rice market. This, coupled with low stocks of exporters from other countries, means that any reduction in supply could push up global food prices.

　　As a result of India's rice export ban, the UAE Ministry of Economy announced on July 28 that it was suspending rice exports for four months to ensure that the local market has an adequate supply of rice, thereby curbing the rapid rise in food prices, including the price of rice. The decision to ban rice exports was accompanied by a ban on the re-export of rice imported from India after July 20, 2023, and applies to all rice varieties, including brown, fully refined or semi-refined rice.

　　And Russia continues to extend the rice export ban, adding to the grain market. The Russian government informed on July 29, Russia has decided to continue the temporary ban on the export of rice and broken rice, the period to December 31 this year, "in order to ensure the stability of the domestic market." Since the outbreak of the Russian-Ukrainian conflict, Russia in order to guarantee the supply of the domestic market, from July 1, 2022 began a temporary ban on the export of rice, and then extended the ban several times until the end of this year.

　　At a time when global rice supplies are tight, officials from the Myanmar Rice Federation have revealed that Myanmar plans to temporarily restrict rice exports for about 45 days from the end of August to control rising domestic rice prices. Myanmar is the world's fifth-largest rice exporter, exporting more than 2 million tons of rice annually, according to the U.S. Department of Agriculture. Although Myanmar is not as important a player in the global rice market as India or Thailand, the export restrictions come at a time when supplies are tight and are bound to send bullish signals to the market.

　　Global prices for key rice staples have risen by about $80 per ton since India restricted rice exports in July. Global rice prices offered by major rice exporters such as Thailand and Vietnam have risen to the highest level since 2021. Major rice-importing countries such as the Philippines and Indonesia are snapping up rice as droughts triggered by the El Niño phenomenon will lead to reduced production. Singapore, in an effort to stabilize supply sources and rice prices, is working closely with importers to increase the variety of sources to import different varieties of rice, and is seeking the Indian government to be able to waive the rice export ban.

　　However, on the evening of August 25, the Indian Ministry of Finance issued a circular announcing the imposition of a 20% export tax on steamed grain rice with immediate effect. This means that India has banned the export of all non-Indian fragrant rice varieties that account for 80% of exports. India's export ban in July has already caused global rice prices to rise by more than 25%, close to the highest level in 12 years. Its further restrictions on rice exports threaten to push up global rice prices again.

　　Currently, more than 3 billion people around the world use rice as a staple food, with nearly 90% of them coming from Asia. Indian rice exports to more than 140 countries and regions, India and other countries to take the rice export restrictions, as well as Thailand and Vietnam and other major rice exporting countries, the price of rice, will force Asian countries have to import rice at a higher price, to promote food prices continue to rise during the year.

　　In addition, the recent Russia-Ukraine conflict further intensified, Ukraine's next harvest season is approaching, the Russian side announced that the Black Sea grain export agreement "termination", once again triggered concerns about global food security. According to FAO data, in 2022, about 900 million people worldwide will be in a situation of severe food insecurity. Under the compounding effects of the weak global economy, regional conflicts and extreme weather, it is feared that this year's severe global food insecurity will continue to deepen.

　　FAO warned that "rising rice prices will threaten the food security of a large part of the world's population, especially the poorest and those who spend a large part of their income on food rations", while emphasizing that export restrictions on food such as rice will also have a negative impact on production, consumption and prices, even after the expiry of the restrictions. Even after the expiration of the restrictions, they are likely to continue and may exacerbate high domestic food prices in many countries.