Recent floods in China’s critical northern grain-producing belt have damaged the corn and rice crops, raising concerns about global food inflation. As a new typhoon approaches and more rain is anticipated, the impact on China’s cereal crops is still uncertain, intensifying the challenges due to disruptions in food supply chains worldwide.
Floods have wreaked havoc on corn and rice crops in China’s northern grain belt, a key agricultural area. This comes at a time when global food supplies are already under strain due to various factors, such as India’s ban on rice exports and disruptions in grain shipments caused by the conflict in Ukraine. The extent of the damage is yet to be fully determined, but preliminary estimates indicate that millions of metric tons of corn, around 2% of the nation’s output, have been affected by the floods.
Implications:
Experts warn that the flooded areas in northern China are likely to experience yield losses, impacting both corn and rice production. Tropical storm Khanun adds to the uncertainty, potentially worsening the crop damage inflicted by the recent Typhoon Doksuri. As a response to the situation, China’s Hebei province has heightened its emergency readiness to combat potential downpours from the incoming storm.
Global Impact:
The flood-induced damage to China’s grain-producing regions is expected to influence global rice prices, adding upward pressure. Rice prices have already surged more than 20% following India’s ban on non-basmati white rice exports. While China is expected to increase its corn imports to offset the impact, the damage to rice production might not result in extensive imports, as China maintains sufficient domestic rice inventories.
Official Statements and Projections:
China’s agriculture ministry has acknowledged the impact of the floods on corn-producing areas, though it has maintained its corn output estimate for the year. Additionally, analysts predict a reduction of 3%-5% in rice production due to floods.
The U.S. Department of Agriculture (USDA) forecasts record-high corn imports for China, partially mitigating the impact of the flooding on corn supplies.
Conclusion:
As the aftermath of the floods continues to unfold, concerns over global food inflation intensify. The interplay between climate-related disruptions and geopolitical factors underscores the need for resilient food supply systems worldwide.
This article is based on information sourced from the original news report by Reuters. To read the complete original article, please visit: https://www.reuters.com/world/china/china-floods-hit-rice-corn-crops-trigger-food-inflation-worries-2023-08-11/