South African consumers are feeling the pinch as the price of rice continues to climb. Experts attribute the increase to a combination of factors, including global market dynamics and South Africa’s reliance on rice imports.
Thabile Nkunjana, senior economist at the South African Government’s Trade Research Unit, explained that South Africa, like many other African countries, consumes a large amount of rice but cannot produce enough to meet local demand.
South Africa imports a significant amount of rice, with imports reaching 1.2 million tons in 2023, an 8.4% increase from the previous year, he said.
The impact of these global market forces is being felt directly by South African consumers. Data from Statistics South Africa data shows a sharp rise in food inflation, with rice prices leading the pack. This translates to a concerning 28% increase.
“A 2kg bag of rice that cost R36 a year ago now costs R46,” said Nkunjana.
India’s export curbs trigger price surge
The recent surge in rice prices can be traced back to a key decision by India, the world’s largest rice exporter. “When India curtailed its rice exports in the second half of 2023, global export prices rose,” Nkunjana explained.
This disruption in the global supply chain had a ripple effect, impacting South Africa despite being geographically distant.
With India limiting exports, South Africa looked to other rice-producing countries like Pakistan and Vietnam. However, this offered little relief. “Due to global demand, export prices from these countries also rose significantly,” Nkunjana added.
Local consumers feel the pinch
Consumers bear the brunt of the increase and Virginia Maree, a regular rice buyer from Gqeberha in the Eastern Cape, expressed her frustration. “This price increase is ridiculous,” she said.
“Our expenses are going up, but salaries remain stagnant. It forces us to cut corners and tighten our budgets,” Maree said.
She added that rice remains a staple food in her household but the ongoing price hike may force her to seek alternative food staples because she simply cannot afford another price hike next month.
Mervyn Abrahams, the programme coordinator at the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), said, “We tend to import most of our rice from South Asia, neglecting potential suppliers within Africa.”
He highlighted the logistical benefits and reduced risk associated with sourcing rice from neighbouring African countries.
Source: https://www.foodformzansi.co.za/
