Rice prices jump to highest level in 15 years

Global rice prices have risen to their highest level in 15 years amid growing concerns that increased demand and the impact of the “El Niño” phenomenon will reduce grain supplies.

The price of Thai white rice, an Asian standard, rose 2.5% from the previous week to $650 a ton, according to the Thai Rice Exporters Association, the highest level since October 2008.

Prices began to rise in early August following comprehensive restrictions on exports from India’s largest shipping companies and with the threat of dry weather to the Thai crop.

After declining during September and October, gains accelerated in November, and this should keep food inflation high in the coming months, especially in rice-dependent countries such as the Philippines.

In another sign of strong demand for Thai rice, Prime Minister Sritha Thavisin said this week that Indonesia plans to buy two million tons from the country by the end of next year.

This comes at a time when the El Niño phenomenon, which causes crop drought across Asia, is expected to reduce Thai rice production by about 6% in the period 2023-2024.