Rice prices have reached a fresh 15-year high, driven by robust demand and persistent concerns over the global supply.
According to the Thai Rice Exporters Association, Thai white rice 5% broken, a key Asian benchmark, witnessed its third consecutive weekly surge, reaching $659 per ton on Wednesday. This marks the highest level since October 2008 and signifies a notable 38% increase in prices throughout the year. The surge is attributed to a combination of factors, including India, a major rice exporter, imposing restrictions on exports and adverse weather conditions posing a threat to production.
The continuous uptrend in rice prices underscores the challenges faced by the global market, raising questions about the sustainability of supplies and the potential impact on consumers and economies heavily reliant on this staple food. Analysts are closely monitoring the situation, considering the broader implications for both producers and consumers in the face of these unprecedented price levels.