(Yicai) Aug. 4 -- China’s imports of rice halved in the first six months from the same period last year as the price soars on the global market and many countries introduce export bans. Given that the cost is unlikely to fall significantly, the country’s imports of the grain will remain depressed in the second half, experts said.

In the first half, China imported 1.8 million tons of rice, a drop of 49.6 percent from the same period last year, according to the latest data. But the price surged 33 percent over the period to CNY3,603 (USD501) per ton.

China has an abundant supply of rice and imported varieties are now much more expensive than homegrown ones. The wholesale price of early indica rice in Guangdong was CNY3,710 (USD516) per ton as of June 28, while the arrival prices of rice imported from Thailand, Vietnam, and Pakistan were CNY4,307 (USD600), CNY4,188, and CNY4,037 per ton respectively.

The international price of rice has been on the rise since July last year. The FOB export price of rice from Thailand surged 40 percent on Aug. 1 from a year earlier to USD572 per ton, while that from Vietnam jumped 30 percent to USD545 per ton, according to the National Grain and Oils Information Center. They are both now the highest they have been in a decade.

In order to rein in runaway prices and ensure domestic supply, many countries, such as India, the United Arab Emirates and Russia, have started to ban rice exports. The world's second and third largest rice exporters, Thailand and Vietnam, have yet to do so.

Most of China's rice imports are from Vietnam, followed by Myanmar, Thailand, India and Pakistan. India used to be the biggest exporter to China, but after the export curbs were introduced, it slipped to fourth place, accounting for 38 percent of imports.

But imports of polished rice, which is almost as popular as domestic rice in some parts of the country, are expected to stay stable, said Zheng Wenhui, a grain economy researcher at the Guangdong South China Grain Exchange Center. After years of development, certain varieties of rice from countries such as Vietnam, Thailand, and Pakistan have become staple foods in Guangdong.

Companies are likely to continue to import rice, even if the cost is high, although the quantity may be reduced, Zheng said. However, if the price remains significantly higher than that of homegrown rice, they may need to consider adjusting their sources of supply.

Editor: Kim Taylor