Vietnam next to cut rice exports

Vietnam is one of the world's biggest rice exporters

Vietnam has become the latest rice-producing nation to limit exports of the grain against a backdrop of soaring global prices and demand.

Vietnam, the world's second-biggest rice exporter, said it would cut exports by 22% this year, following similar moves by India and Egypt.

Analysts said the Vietnam government wanted to stabilise domestic prices.

Global rice prices have soared by 50% in the past two months raising supply concerns across Asia.

Thailand is the world's largest rice exporter.

China subsidies

While rice prices have risen primarily because of increasing demand from population growth, they have also been lifted by poor recent crops in Vietnam.

Neighbouring Cambodia has also recently introduced limits on rice exports.

China is the world's biggest rice producer, but almost all of its crop is kept for the domestic market.

With the world's largest population to feed, Beijing keeps rice prices subsidised.

It said on Friday that it would now pay farmers more for both rice and wheat in an attempt to boost crop production and cool surging inflation.