[Special Stock] Sinsong Holdings, Mandatory Rice Import Agency... Next Target After World's Largest Rice Exporter: 'Rice'

[Asia Economy Reporter Hyungsoo Park] Sinsong Holdings is showing strength. The stock price appears to be influenced by forecasts that India may ban rice exports following wheat and sugar. India is the world's largest rice exporter, and since most Asian countries rely on rice as a staple food, if this materializes, it is feared to have a critical impact on global food security.

As of 12:02 AM on the 27th, Sinsong Holdings is trading at 10,500 KRW, up 21.11% from the previous day.

Major foreign media, citing expert opinions, reported that India's next food protectionist target could be rice. The Indian daily Economic Times also reported that the Indian government is considering restricting rice exports to stabilize domestic supply and prevent price increases. According to sources, the Indian government is currently analyzing essential goods including rice and plans to take swift action if signs of price hikes appear.

Unlike wheat and corn, rice prices in the global food market have remained at low levels. However, if India, the world's largest rice exporter, imposes export restrictions, the situation could change rapidly. India accounts for about 40% of the global supply. It is expected that Asian countries, which consume about 90% of the world's rice, will be hit hard.

Sinsong Holdings purchases grains from overseas producers and sells and distributes them to importers worldwide. Since it requires expertise in understanding grain supply and demand in importing countries, accurate market analysis, and logistics operations, the entry barrier is high. Overseas suppliers are either large companies with oligopoly positions in their countries or government-owned enterprises abroad. From a supply and demand perspective, they can secure stable grain supply and conduct trade business selling grains domestically based on this.

Grain trading is a business that purchases grains from overseas producers and sells/distributes them to importers worldwide. It requires high expertise in understanding grain supply and demand in importing countries, accurate market analysis, and logistics operations, making the entry barrier very high. There is also a history of our government’s mandatory rice import agency operations.