Rice prices record high since 2011 – Kommersant
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Rice Price Index – All Rice Price Index, published by the Food and Agriculture Organization of the United Nations (FAO), increased in July by 2.8% compared to June, up to 129.7 points. This is the highest value since September 2011. Growth compared to July 2022 was 19.7%. Prices for rice produced in Thailand rose especially strongly – by 5%. According to Rabobank analyst Oscar Chakra, the FAO index may show even more significant growth in August.
Such a significant increase in prices is due to several factors. The main one is weather conditions, first of all return this year, the El Niño phenomenon, which leads to higher temperatures, droughts, etc. Another reason is ban for rice exports introduced in July by India. The ban was supposed to keep domestic prices relatively low. According to Peter Timmer, a professor at Harvard University who specializes in food security, the rise in rice prices is also linked to the difficulties in exporting grain and corn from Ukraine due to the conflict.
Experts say rising prices could have a significant negative impact on people in poor countries where rice is the mainstay of the diet. In Africa and Southeast Asia, up to 60% of the calories people get from food comes from rice, and in some countries, such as Bangladesh, this share reaches 70%. “Higher rice prices will contribute to food inflation, especially for poor households in Asian countries, which are the main consumers of rice. When one country has introduced an export ban, other countries often follow suit. The main losers are the poor around the world,” said Joseph Glauber, senior fellow at the American International Food Policy Research Institute.
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