Page 5 - 4-April-2020-UPSC-Exam-Comprehensive-News-Analysis
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Background:


              India is currently the world’s largest exporter of rice.
              India mainly exports non-basmati rice to Bangladesh, Nepal, Benin and Senegal, and premium
               basmati rice to Iran, Saudi Arabia and Iraq.


        Details:

              The nationwide lockdown has resulted in labour shortages and transport has become very
               difficult. The logistics disruptions have hampered the delivery of even existing contracts and hence
               the rice traders have stopped signing new export contracts.
              India’s export volumes have fallen by four to five times.


        Concerns:

        Long term impact on market for Indian rice:


              The halt in exports is allowing other competitors such as Thailand to raise shipments. This might
               reduce the market for Indian rice in the long term.


        Nutritional security:

              Thailand is the only key exporter to offer rice currently. Cambodia, Vietnam and Myanmar have
               curbed their rice exports.
              The shortage of supply in the global market has resulted in higher global prices, forcing
               millions of poor consumers in Africa to pay high prices and affecting their nutritional security.





        3. Brent surges past $33 on output deal hope

        Context:

              Crude oil futures have registered an increase after a continuous decrease over the last few months.


        Background:

              Oil prices had slumped 65% in the first quarter of the year owing to the following factors:
                   o  Demand slump caused by the global COVID-19 outbreak.
                   o  Failure of the OPEC+ talks. Failure to cut supply in the global markets and decisions by
                       Russia and Saudi Arabia to increase their crude production.
                            The Organization of the Petroleum Exporting Countries and allies such as
                              Russia, is known as OPEC+.

        Details:


              OPEC and its allies are working on a deal for a production cut of about 10% of global supply.
              In light of the rising hopes of a new global deal to cut global crude supply, the benchmark Brent
               crude oil futures has climbed to as high as $34.91 a barrel. U.S. West Texas Intermediate (WTI)
               crude has also marked an impressive rise.
              Though there is agreement on the need for a reduction in global supply on crude, there are
               differences over the distribution of such production cuts among the producer countries.
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