As per recent data from the Thai Rice Exporters Association, prices of Thai white rice jumped to $648 a ton, the most expensive since October 2008. This is an almost 50 per cent increase in prices in the past year.
Rice representation (File photo)
Rice prices in Asia soared to the highest in almost 15 years over global supplies as dry weather threatens production in Thailand as well as the ban imposed on some varieties by the top supplier India.
As per recent data from the Thai Rice Exporters Association, prices of Thai white rice jumped to $648 a ton, the most expensive since October 2008. This is an almost 50 per cent increase in prices in the past year.
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Amid the drier conditions with the onset of El Nino, Thailand authorities are encouraging farmers to switch to crops that need less water.
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Cumulative rainfall in the growing region is 40% below normal, and the move to curb planting is to conserve water for households.
It is to be noted that the government previously asked growers to reap only one crop this year.
Thailand is the second biggest shipper of the commodity which is vital to the diets of billions of people in Asia and Africa.
The surge in price coming after India’s ban on export could add to inflationary pressures and boost import bills for buyers.
Last month, the Government of India prohibited the export of Non-Basmati White Rice to curb the rising prices.
The domestic prices of this variety of rice were on an increasing trend with retail prices increasing by 11.5% over a year and 3% over the past month.
The surge in Thailand’s rice price coming after India’s export ban will aggravate stresses in global food markets.
The global market is already affected by wild weather and reduced grain supplies from the Black Sea region because of Russia’s war in Ukraine.
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