Two strong typhoons have hit North and Northeast China over the past several weeks, resulting in heavy rains and severe flooding inundating vast swathes of farmland.
A recent report by a leading credit firm, Fitch Ratings, has said that global rice prices will surge because of the floods in China which is the world’s leading rice producer.
“[The] effects on corn prices should be limited due to strong global supply,” the report said.
The three provinces in northern and northeastern China—Inner Mongolia, Jilin, and Heilongjiang account for 23 percent of China’s rice production.
Typhoons Doksuri and Khanun have impacted them in recent weeks, with Doksuri being one of the worst storms to hit northern China in years, bringing severe flooding to many areas.
Khanun landed on the coast of Zhuanghe City in northeastern Liaoning Province on Aug. 11, which brought heavy rains to the Liaodong Peninsula, central and eastern Heilongjiang, central and eastern Jilin, eastern and southern Liaoning.
Fitch pointed out that many key grain production areas in those three provinces were already affected by heavy rains and floods brought by Typhoon Doksuri in early August, and they had to face “another deluge as Typhoon Khanun moves north.”
Rice Production Base Hit Hard
Many areas in Heilongjiang, such as Wuchang City, are important grain bases for the country, but its fertile land has been submerged, wiping out the livelihood of farmers. The Fitch Ratings report said this may exacerbate China’s food supply crisis this year.Li Jun (alias), a villager in Wuchang City, told The Epoch Times on Aug. 16 that 90 percent of the rice production in his village had been completely lost and that Minle Township, where his village belongs to is the main rice-producing area in Wuchang.
He estimated that the loss of rice production in Wuchang due to flooding could reach 30 to 40 million yuan ($4.12 million to $ 5.5 million).
“We all worked in vain for a year, and there’s nothing left after one flood. It takes three years to earn back what’s been lost this year,” he said.
The soaked grain fields in northeast China will reduce crop yields for the year, according to the Fitch Ratings.
“This will lift China’s domestic grain prices and likely drive higher imports in 2H23 to partially offset the potential yield loss,” which would drive global rice prices even higher, the report said.
Global rice prices have already reached the highest in 12 years, according to the Food and Agriculture Organization All Rice Price Index.
Besides rice, the credit ratings firm pointed out that floods have also impacted other major crops, such as corn and soybean grown in Inner Mongolia, Jilin, and Heilongjiang Provinces.
However, the full extent of the damage by the heavy rain and floods is still unclear, the report said, adding that China is expected to import more of both grains this year than the last.
Stocking up on Grains
Canada-based current affairs commentator Wen Zhao said in his talk show on NTD that he checked records and found that it’s unprecedented that “the three provinces in northeastern China were swept through by two strong typhoons in two weeks, especially in Mudanjiang city, Wuchang, and Shulan where people had to face two rounds of floods brought by the typhoons.”Mr. Wen also noted the unusual length of Khanun, which started on July 28 and hit northeast China on Aug. 11. Typhoons normally last for six to seven days.
He said the authorities’ disaster prevention and relief attempts, especially in recent floods in Beijing, Hebei, and the Northeast, showed it was beyond their ability to deal with such crises.
“Chinese people can’t rely on the Chinese Communist Party,” Mr. Wen said.
He suggested that “each family in China should stock up on dry food at home such as rice that can last for six months” to avoid starvation.
