Rice prices already at an eleven year high, expected to rise further

Global rice prices are at their highest in over a decade, and prices are only expected to rise higher. As per a report by Reuters, this is despite a forecast by the U.S Department of Agriculture of a near-record output in the top six rice producing countries, including India. 

India exports more than 40% of the world's rice, which totalled 56 million tonnes in 2022. Indian rice exports have seen a 9% increase in prices, which in itself is a five year high. 

Almost 90% of the water-intensive crop is produced in Asia, where there is the threat of the El Nino. This phenomen usually leads to lower rainfall which in turn will impact production and lead to a rise in prices. However, even before the El Nino has made its presence felt, global price price index of the Food and Agriculture Organization hovers above an 11-year high. 

After the recent increase in demand, global rice stockpiles are expected to reach a six-year low of 170.2 million tonnes by the end of 2023-24. This as stocks in the major producers China and India decline, says the ET article. 

Experts quoted by Economic Times say that rice prices have already been rising due to limited supplies and that if production is hit, prices will go up. 

The ET report also cites the USDA, saying, that global inventories of rice are set to drop to a six-year low of 170.2 million tonnes by the end of 2023/24, as stocks fall in top producers China and India after the rising demand of recent years.