Asian rice prices are about to return to a 15-year peak
Regulation & Compliances
Market & Price Trends
Published Dec 1, 2023
Thailand's rice prices, which serve as a reference for the Asian market, have risen by $57 in the past two weeks to reach $640/ton, nearing the highest level since 2008. Strong demand from countries like Brazil and the Philippines, coupled with higher domestic prices and a stronger currency, have contributed to this increase. The ban on rice exports in India is also expected to continue until 2024, potentially leading to higher inflation in rice-importing countries. Additionally, Thailand's rice output for the main farming season of 2023 is projected to decrease by about 6% due to the impact of the El Nino weather phenomenon.
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The price of Thailand's 5% broken rice - the reference price for the Asian region - increased by 57 USD in the past 2 weeks, to 640 USD/ton after a relatively quiet period. At this level, Asian rice prices are close to their highest level since October 2008. Previously, Thai rice prices rose to this level in August 2023 after India banned the export of ordinary rice. Chookiat Ophaswongse, Honorary President of the Thai Rice Exporters Association (TREA), shared that Thai rice prices have increased sharply thanks to demand for rice from countries such as Brazil and the Philippines. Rising domestic prices coupled with a stronger baht have helped underpin this momentum, he added. "Our rice export activities are quite good because inventories in Vietnam are low," Mr. Chookiat said. India introduced a ban on rice exports at the end of July 2023 and is expected to continue this ban until 2024. This is an effort by Prime Minister Narendra Modi's administration to control domestic prices ...