The global food supply chain, as well as demand for agricultural products, faces an unprecedented threat from the coronavirus pandemic.
Livelihoods have been destroyed and economies struggle to recalibrate to normalcy, while prices of basic foodstuffs soared and countries imposed measures to limit exports and shore up domestic supply, albeit mostly for a short duration.
African countries, which import huge volumes of rice, have also seen domestic prices rising up to 50.7% over February through May, according to FAO data. Africa is expected to consume 38.6 million mt of rice in 2020-21, while the continent’s production is estimated for 23.5 million mt during the same season, according to the US Department of Agriculture.
Many North African countries, which are big importers of cereals, stepped up imports and relaxed restrictions to secure supplies amid looming uncertainty. Morocco has extended the exemption of 35% duty on soft wheat until December 30, while Egypt, the world’s largest wheat importer, accelerated its purchase of the grain, fearing supply constraints.
Notwithstanding the current curbs on grain exports, the intention of major exporting countries has been more towards normalcy than extension.
