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Indian Rice Export Restrictions Causing Price 'Shockwaves,' USDA Says

New Indian export restrictions on white rice have caused global importers to instead buy from Thailand, Vietnam and other suppliers, causing export price quotes to “surge” to the highest levels since 2008, USDA’s Foreign Agricultural Service said in a Sept. 19 report. The agency said the July restrictions on Indian rice have “sent shockwaves through the global rice market,” adding that rice prices already had been rising before the measures.

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USDA said U.S. rice export prices are “unlikely to be substantially impacted” because of the higher prices for American rice -- over the past month, U.S. export quotes remained at $760 per ton. But Vietnamese quotes rose $31 to $643/ton and Pakistani quotes increased $45 to $610/ton because of “strong” demand following India’s export restrictions.