Why rice prices around the world have increased by almost 10% in one month

2023-09-08 10:27:00

THE rice price in the world reached their highest level in 15 yearsincreasing 9.8% month-on-month following India’s export restrictions, the Food and Agriculture Organization of the United Nations (FAO) said on Friday.

World food prices as a whole fell slightly last month (-2.1% compared to July), driven down by the decline in grain pricesvegetable oils, meat and dairy products.

But rice prices are directly affected by the decision taken on July 21 by New Delhi to ban the export of non-basmati white rice (regarding a quarter of its usual rice exports), in order to preserve enough of this product for its inhabitants.

However, India accounts for 40% of the world’s rice trade and sells quantities of broken rice to Africa, notably to Senegal, Nigeria, Ivory Coast and Benin, as well as to Asia (Pakistan, Philippines) and the Middle East (Turkey, Syria).

Increase of 30% over one year

World rice prices were already at the end of July “up 30% over one year”Patricio Mendez del Villar, rice specialist and economist at the Center for International Cooperation in Agricultural Research for Development (CIRAD), told AFP.

While waiting for the new harvests, facing the “uncertainties regarding the duration of the ban“ decided by India and “fears that export restrictions will be extended to other types of rice”the world rice market has tightened, the FAO stressed.

Many States and actors have chosen to “keep stocks”of “renegotiate contracts” or “to stop making price offers”, explained the UN agency in a press release.

To deal with the situation, the Philippines, for example, signed an agreement with Vietnam on Thursday to secure their rice imports for five years.

However, rice reserves in the world are abundant: according to the FAO, “Global rice stocks at the close of the 2023-2024 marketing years are still expected to reach their peak. highest level ever recorded“ following an increase of 1.4% compared to 2022-2023. Nearly three-quarters of this volume should be held by China and India.

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