Rice prices in Asia have surged to their highest levels in almost 15 years due to concerns surrounding global supply. Dry weather in Thailand and a ban on certain exports by India, the top shipper, have contributed to this increase. The Thai Rice Exporters Association reports that Thai white rice 5% broken, an Asian benchmark, has climbed to $648 per tonne, the highest since October 2008.
This spike signifies a nearly 50% price increase over the past year, as reported by IANS citing Bloomberg. Rice is a staple food for billions of people in Asia and Africa, and the surge in prices is likely to worsen inflationary pressures and raise import costs for importers. Thailand, the world’s second-largest rice shipper, faces the latest supply threat. The government is urging farmers to switch to crops that require less water in preparation for the drier weather caused by El Nino.
The major central growing region in Thailand has experienced cumulative rainfall that is 40% below normal, leading to a decision to reduce planting in order to conserve water for households. So far, the government has instructed farms to only harvest one crop this year. On the other hand, India has further restricted its rice exports, causing panic buying in several countries. These restrictions have heightened concerns about global scarcity amidst rising global consumption.
IMF Urges India to Lift Rice Export Restrictions
In a statement on July 26, the International Monetary Fund (IMF) emphasized the need for India to lift restrictions on the export of a specific type of rice. The IMF stated that these export restrictions would have a global impact on inflation. Earlier on July 20, the Indian government banned the export of non-basmati white rice in order to increase domestic supplies and regulate retail prices during the upcoming festive season. Non-basmati white rice constitutes about 25% of the total rice exported from India.
(With inputs from agencies)
ALSO READ: Govt to sell additional 50 lakh tons wheat, 25 lakh tons rice in open market to contain price rise
Latest Business News
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
