Rice Prices May Stabilize after Harvest but There is Not Enough Cultivated Land

31 july 2015 | IA REGNUM

Expert of the Analytical Center Roman Titov believes that the increase in the price of rice stems from a fall in imports and low stocks of rice. “In the current situation in Russia we should be talking about short term shortages resulting from a significant decline in imports of rice and low available stocks that increased only slightly this year,” he explained

Roman Titov
Roman Titov
Department for Expert Analytics

Commenting on the situation to IA REGNUM correspondent, the expert cited the following data: in the first five months of 2015 imports of rice fell by more than a third – January through May 2015 saw 93,200 tons of rice being imported into Russia while in the same period of last year 135,600 tons were imported. In the meantime, rice stocks available at July 1 were up by a modest 5,000 tons on last year.

Mr. Titov believes that after the crop is harvested in 2015 the situation with prices in the market may stabilize. However, the amount of land used for cultivating rice is not sufficient to compensate for the decline in imports. “Preliminary data indicate that this year the amount of rice sown is 1,500 tons more than last year, so assuming we have the same yield this year, in the fall our harvest should be about 8,000 tons more than last year,” the analyst added, noting that the prices of rice were driven up by an increase in the cost of imported rice due to the weakening of the ruble and an average 28% increase in the price of mineral fertilizers.