Global increase in rice prices calls for more focus on domestic production

Published Dec 17, 2023

Tridge summary

The World Bank Global Commodity Outlook predicts that rice prices will continue to increase due to export bans and the ongoing risk of El Niño, with an estimated additional 6 per cent increase in global rice prices in 2024. High demand from countries like Indonesia, the Philippines, and Malaysia has caused rice prices to increase in producing countries like Thailand, Vietnam, and Argentina, with the price of US long-grain milled rice reaching its highest point since 2008. Despite efforts to lift bans and open borders, experts suggest that increasing local production is the best solution to combat rising rice prices, with the president of the All Farmers Association of Nigeria calling for government subsidies and limited protectionism for key industries.

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Original content

As a result of major producing countries’ export bans and El Niño’s ongoing risk, the current World Bank Global Commodity Outlook predicts that rice prices won’t decline dramatically until 2025. The analysis stated that there is an estimated additional 6 per cent increase in global rice prices in 2024 after they increased by 28 per cent on average in 2023 compared to 2022. The USDA, Foreign Agricultural Service, Production, Supply, and Distribution database indicates that high demand from Indonesia, the Philippines and Malaysia caused price bids from Thailand to increase since September. In reaction to India’s export prohibition on regular-milled white rice, Thailand’s 100 per cent Grade B long-grain milled rice was priced at $629 per tonne in September, while Vietnam’s prices increased to $645 a tonne by the end of August. Similar to Thailand, Vietnam’s prices increased from late July to late August, mostly as a result of India’s export restrictions and the quick purchases made ...

Source: Daily Trust (ng)