The price of rice in Asia has reached its highest level in almost 15 years due to growing concerns about world supply and the impact that the drought could have on Thai production, Bloomberg Line reported. This situation could be aggravated by the fact that India, one of the largest exporters, has imposed restrictions on some shipments.
Thai 5% broken white rice has risen to $648 per tonthe highest price since October 2008. In this way, it has an increase of almost 50% since the last year.
In Thailand, the authorities are encouraging farmers to switch crops to ones that require less water, as the country will soon face El Niño, which will worsen the drought. It should be noted that this is the second exporter of this food.
Rainfall in the central region is 40% below normal and it seeks to conserve water for family consumption. The Government had already asked farmers to collect a single crop this year.
To protect domestic supply, India extended its ban on shipments in July, prompting “panic” buying in some countries. In this way, the fear of a global shortage was exacerbated in a context in which consumption is growing.
Added to this scenario were the increase in prices on world markets and the reduction in the supply of cereals in the Black Sea due to the restrictions promoted by Russia in Ukraine.
With information from Bloomberg Line
Source: Larepublica
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