Rice prices are at their highest in 11 years and are expected to rise further due to several factors. India, which accounts for over 40% of global rice exports, has increased payments to farmers, leading to higher prices for rice. The El Nino weather pattern, which typically brings lower rainfall to Asia where rice is primarily produced, is also threatening yields in key rice-producing countries. Additionally, the prices of other staple foods such as sugar, meat, and eggs have risen globally, further driving up the price of rice. Global inventories of rice are expected to drop to a six-year low, leading to concerns of limited supplies and potential price rallies. If yields drop sharply due to El Nino, rice prices could rise by up to a fifth. However, some Asian countries such as Indonesia and the Philippines have been building stocks and increasing purchases from suppliers like Vietnam to mitigate potential supply disruptions.
More Rice Please…
Greg P
Posted underAsiaCommoditiesFoodweather
