Rice prices surge to highest level in 15 years
Published on: December 5, 2023.
Filed under:
Rice Prices Soar, Raises Concerns for Asia and Africa
Rice prices are on the rise and are expected to reach their highest point in 15 years, which is causing worry in Asia and Africa. These regions heavily rely on rice as a staple grain for their sustenance. The cost of 5 percent Thai white broken rice, a standard in Asia, has surged by USD57 in the past two weeks, reaching USD640 per ton. This price is just below the peak recorded in October 2008. The increase in prices has been worsened by export restrictions imposed by India, the world’s leading rice exporter, in early August.
The surge in demand for Thai rice from unexpected importers such as Brazil and the Philippines has contributed to the rising prices. Chokiat Ovasawongsi, the honorary president of the Rice Exporters Association in Thailand, explained that the increase in local prices and the strength of the Thai baht currency have played a crucial role in supporting this upward trajectory. Additionally, Vietnam’s rice inventory shortage has further fueled the price increase, leading to increased sales for Thai rice.
India’s decision to tighten export restrictions aligns with Prime Minister Narendra Modi’s strategy to control domestic prices before the upcoming elections. These measures have impacted supply deals and influenced diplomatic decisions, as major rice consumers express concerns about the adequacy of the supply. The ripple effects of these developments are raising broader concerns about food security and economic stability in regions heavily dependent on rice as a dietary staple.
For more information on rice exporters, visit [HAS Rice](https://www.hasrice.com), one of the leading rice suppliers in Pakistan. Their website provides a wide range of information related to rice exports, including pricing, statistics, and images.
