Rice prices surge to a 15-year high due to India’s export restrictions and the adverse weather which is impacting agriculture in Thailand.
Rice prices have soared to their highest levels in almost 15 years following export restrictions imposed by India, the world’s largest rice exporter, RT reported.
This price surge, coupled with adverse weather conditions in Southeast Asia, is posing a potential threat to crop production and food security, and raising concerns about the international supply of rice.
The price surge was triggered by India’s announcement in late July to limit shipments of non-basmati white rice. This decision aimed to curb rising domestic rice prices, which had surged by over 30% since October 2022.
However, the move has sparked concerns about inflation in global food markets, given rice’s essential role in the diets of billions of people across Asia and Africa.
Exacerbating the problem, Thailand, the world’s second-largest rice exporter, is facing potential disruptions due to changing weather patterns. Thai authorities have been urging farmers to shift to crops that require less water as the country anticipates drier weather.
In the first seven months of this year, Thailand managed to export 4.8 million metric tons of rice, averaging monthly shipments of 700,000 to 800,000 tons, according to the President of the Thai Rice Exporters Association. In comparison, last year’s rice exports from Thailand amounted to 7.71 million tons.
Back in July, India, the world’s largest rice exporter, prohibited imports of non-basmati white rice in order to keep local prices stable ahead of the general election in early 2024.
The country was mulling a ban on most types of rice, which may push up already-high worldwide prices when the disruptive El Nino weather pattern returns.
Source: Almayadeen
