rice prices near highest in 15 years
Published on: December 5, 2023.
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Rice Prices Soar, Raising Concerns in Asia and Africa
Rice prices have been steadily rising and are now heading towards a 15-year high, causing worry in Asia and Africa where millions rely on this key staple grain for sustenance. The cost of 5 percent Thai white broken rice, which is considered a standard in Asia, has increased by $57 in the past two weeks, reaching a price of $640 per ton. This is just below the peak recorded in October 2008. The surge in prices has been exacerbated by export restrictions imposed by India, the world’s leading rice exporter, in early August.
The unexpected rise in demand for Thai rice from non-traditional importers like Brazil and the Philippines has contributed to the escalating prices. Chokiat Ovasawongsi, the honorary president of the Rice Exporters Association in Thailand, has stated that the surge in local prices, combined with the strength of the Thai baht currency, has played a significant role in supporting this upward trajectory. Additionally, Vietnam’s rice inventory shortage has further fueled the increase, leading to higher sales for Thai rice.
India’s decision to tighten export restrictions in late July, which are expected to continue until next year, aligns with Prime Minister Narendra Modi’s strategy to control domestic prices ahead of upcoming elections. However, 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 [https://www.hasrice.com](https://www.hasrice.com).
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