Rice prices have escalated to their highest levels in almost 15 years across Asia. This surge comes amidst mounting concerns regarding global supplies, as dry weather imperils production in Thailand. Adding to the situation, India, a prominent rice exporter, has imposed bans on certain exports, further exacerbating the price hike, as reported by various media outlets.
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According to data released by the Thai Rice Exporters Association and reported by Bloomberg, the Asian benchmark for Thai white rice with 5 percent breakage has surged to $648 per tonne. This price point marks the highest since October 2008.
This results in a price hike of nearly 50 percent over the course of the past year.
The report highlights that rice holds immense significance in the diets of billions across Asia and Africa. The considerable rise in prices has the potential to contribute to inflationary pressures and amplify the import expenditures for purchasers.
Bloomberg has reported that the current challenge to the supply chain originates from Thailand, the second-largest exporter of rice. In anticipation of drier conditions due to the onset of El Nino, authorities in Thailand are urging farmers to transition towards cultivating crops that require less water.
In the essential central cultivation area, the cumulative rainfall has fallen 40 percent below the usual levels. This decision to restrict planting aims to preserve water resources for households. Earlier, the government had advised growers to harvest just one crop this year.
Last month, India widened its shipment ban to protect domestic supplies, spurring panic buying in some countries. The curbs exacerbated worries over a global shortage amid growing world consumption, Bloomberg reported.
The price surge will aggravate stresses in global food markets that have been rocked by wild weather and reduced grain supplies from the Black Sea region because of the Russia-Ukraine war.
