THE PHILIPPINES is seen to benefit the most from an expected decline in global rice prices once India relaxes restrictions on rice exports, Nomura Global Markets Research said.
“We expect the Philippines to be the biggest winner in Asia, given the high share of rice in its consumer price index (CPI) basket, its dependence on rice imports and recent rice import tariff reductions,” it said in a report.
“The Philippines will likely benefit most from falling international rice prices, via positive terms-of-trade effects and easing domestic food price inflation.”
Market participants are expecting India, the world’s largest exporter of white rice, to relax restrictions on rice exports soon. Last year, India suspended exports of non-basmati white rice amid concerns over domestic supply.
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