9-8-2023 (BANGKOK) Rice prices in Asia have reached their highest point in nearly 15 years, raising concerns about global supplies. Dry weather conditions in Thailand, coupled with India’s ban on certain rice exports, have contributed to the surge in prices.
According to data from the Thai Rice Exporters Association, the price of Thai white 5% broken rice, which serves as an Asian benchmark, has skyrocketed to $648 per tonne. This is the highest price recorded since October 2008, marking an increase of almost 50% over the past year.
Rice is a crucial staple in the diets of billions of people across Asia and Africa. The significant rise in prices could have inflationary implications and burden importers with higher bills.
Thailand, the world’s second-largest rice exporter, is facing a threat to its supply due to dry weather conditions. Authorities have been urging farmers to switch to crops that require less water as the country prepares for the onset of El Niño and anticipates drier conditions. Cumulative rainfall in the central growing region has been 40% below normal, leading to concerns about water scarcity for households. The government has previously encouraged farmers to harvest only one crop this year.
Adding to the supply concerns, India recently expanded its ban on rice exports to protect domestic supplies. This move triggered panic buying in some countries and further heightened worries about a global rice shortage in the face of increasing worldwide consumption.
The surge in rice prices exacerbates the strain on global food markets, which have already been impacted by extreme weather events and reduced grain supplies from the Black Sea region due to Russia’s ongoing conflict in Ukraine.
