The Food and Agriculture Organization reported Friday that global rice prices rose to their highest level in 15 years in August as a result of India, the world’s largest rice exporter, banning some exports of the commodity.
Even though food prices worldwide decreased in August, the price of rice increased 9.8% from the previous month, “reflecting trade disruptions in the wake of an export ban on Indica white rice by India,” the FAO stated in a monthly report.
“Uncertainty about the ban’s duration and concerns over export restrictions caused supply-chain actors to hold on to stocks, re-negotiate contracts, or stop making price offers, thereby limiting most trade to small volumes and previously concluded sales,” it stated.
Since the COVID outbreak, the war in Ukraine, and the effects of El Nino weather on production levels, the price of rice has skyrocketed on worldwide markets. Rice is an important food staple around the world.
Non-basmati white rice, which makes up around a fifth of India’s total exports, was subject to a restriction in July.
The Consumer Affairs and Food Ministry stated at the time that the action would “ensure adequate availability” and “allay the rise in prices in the domestic market”.
