Rice Prices Approach 15-Year High in Asia Amid Increased Demand

According to Yahoo News, rice prices in Asia are nearing a fresh 15-year high, potentially causing concern in regions where the grain is a staple food for billions of people. Thai white rice 5% broken, an Asian benchmark, has risen by $57 over the past two weeks to $640 a ton, just short of the highest level since October 2008. The increase is due to unexpected demand from buyers such as Brazil and the Philippines, as well as higher domestic prices and a strengthening of the Thai baht, according to Chookiat Ophaswongse, an honorary president of the Thai Rice Exporters Association. India's export curbs, implemented in late July, have also contributed to the price surge, as the country seeks to control domestic prices ahead of an election. Rice is crucial to the diets of billions of people, contributing up to 60% of total calorie intake in parts of Southeast Asia and Africa. Rising prices have led to increased inflation in major buyers like Indonesia and the Philippines. Furthermore, the onset of El Niño, which typically brings drier conditions to growing areas in Asia, is expected to reduce supply even further. Thailand's production is predicted to decline 6% in 2023-24 due to the climate phenomenon, while Vietnam has directed some farmers to plant their new crop early, warning of drought risks.