August 10, 2023
Rice prices in Asia surged to the highest levels in nearly 15 years, triggering concerns about global supplies. Dry weather threatens rice production in Thailand, while India’s ban on some exports further exacerbated worries. Thai white rice, a benchmark, reached $648 per ton, marking a nearly 50% price increase in the past year.
Rice is a dietary staple for billions in Asia and Africa; these surging prices could escalate inflation and impact import costs. Thailand, the second-largest rice exporter, faces a supply threat as authorities encourage farmers to shift to less water-dependent crops due to impending El Niño-induced dry conditions.
A 40% rainfall deficit in Thailand’s central growing region has prompted measures to conserve water for households, including curbing planting and harvesting only one crop this year. India’s expanded export restrictions have led to panic buying in various countries, intensifying global supply concerns amid rising consumption.
The price spike exacerbates challenges in already tumultuous global food markets, which have been hit by extreme weather and reduced grain supplies from the Black Sea region due to Russia’s conflict in Ukraine.
Source: Business Standard
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