South Africa: Possible Trade Interruptions for South Africa’s Rice Supply Chain due to COVID-19 ImpactUSDA
South Africa has to import rice to meet local demand as rice production is insignificant in the country. As a result, any trade restrictions introduced by exporter countries, due to COVID-19, will put the rice supply chain under pressure. Currently, India, the world’s largest rice exporter, have stopped signing new export contracts amid a nationwide lockdown and Vietnam introduced a rice export quota. India’s decision on rice exports would have a definitive impact on South Africa as it supply about 20 percent of local rice consumption. In addition, world rice prices have soared upwards. Therefore, a prolonged COVID-19 situation would cause major interruptions in South Africa’s rice supply chain.