Global rice prices skyrocket, reaching highest level since 2011
In July, the World Rice Price Index soared to a near 12-year high, according to the United Nations food agency. The index climbed 2.8% from June to its highest level since September 2011. The increase in prices within key exporting nations, along with India’s recent decision to curb exports, were cited as contributing factors by the Food and Agriculture Organization (FAO).
The FAO’s All Rice Price Index, responsible for tracking prices in major exporting countries, averaged 129.7 points in July. This is a substantial increase compared to the 126.2 points it averaged in the previous month. The agency’s analysis shows that the trends in rice prices are following a pattern of global significance.
The July figure of the World Rice Price Index is almost 20% higher than the last year’s score of 108.4 points. This significant increase is a noteworthy event in global economics and the highest reading since the autumn of 2011. This surge is indicative of the challenges and changes within the global food market.
Also experiencing an upward trend, the agency’s overall world food price index rose in July. This rebound comes after hitting a two-year low, as reported by Reuters. The global food market appears to be experiencing a resurgence, and the increase in the rice price index is reflective of this broader trend.
India, a country that contributes 40% of the world’s rice exports, ordered a halt to its largest rice export category last month. This decision was aimed at calming domestic prices that have reached multi-year highs in recent weeks. The erratic weather patterns threatening production have played a role in India’s decision, further complicating the global rice trade.