Rome (Italy), 05/08/23: Rice prices have risen dramatically in recent months, reaching their highest level in nearly 12 years. According to Reuters, the Food and Agriculture Organisation of the United Nations (FAO) announced that the FAO All Rice Price Index increased 2.8 percent from the previous month to an average of 129.7 points in July. This is about 20% higher than at this time last year, and the highest level since September 2011.
A number of variables, including high demand for rice, are contributing to increased rice prices. Another aspect is India’s recent decision to restrict exports, which has limited the supply of rice on the world market. Furthermore, in several rice-producing countries, irregular weather patterns have caused lower yields and tightened supply.
It should be recalled that India, which accounts for 40% of global rice exports, ordered a halt to its main rice export category last month in order to calm domestic prices, which had risen to multi-year highs in recent weeks.
In the current situation, these types of restrictions are expected to worsen volatility in global food prices. They could also result in retaliatory measures, according to IMF Chief Economist Pierre-Olivier Gourinchas during a press briefing.
Rice price increases are expected to have a significant impact on food security in many countries. Rice is a basic diet for millions of people worldwide, and rising costs may make it more difficult for individuals to buy this necessary food.
According to the survey, leading rice exporters include India, Thailand, Vietnam, Cambodia, and Pakistan. China, the Philippines, Benin, Senegal, Nigeria, and Malaysia are among the major importers of the grain.
In 2022-23, India’s total exports of non-basmati white rice were USD 4.2 million, up from USD 2.62 million the previous year. Non-basmati white rice exports from India are primarily destined for the United States, Thailand, Italy, Spain, and Sri Lanka.
