Global rice prices witnessed a 13-year high increase in the month of May

Published Jun 5, 2023

Tridge summary

In May 2023, global rice prices surged by 2.9%, reaching their highest level since October 2011, primarily due to a rise in the Indica rice species, according to the FAO. This increase is attributed to concerns about production impacts from the potential El Niño phenomenon and tight supply, with Vietnam and Pakistan experiencing the most significant price hikes. The price surge was not uniform across all rice types, with the Japonica species showing a decline. The price fluctuations are expected to impact the buying behavior of the Bangladeshi market, despite the government's successful sourcing of 0.9 million tonnes of rice. The FAO report also highlights the variation in export prices for Indica rice across major Asian countries.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(By Planeta Arroz, with Financial Times) Global rice prices witnessed a colossal increase in the month of May, led by a notable increase in the 'Indica' species, which is consumed mainly by South and Southeast Asia, according to the Organization of Food and Agriculture Organization (FAO). FAO, based in Rome under the United Nations, released its monthly report on Friday, revealing a 2.9% increase in the rice price index in May 2023 compared to April. The report stated that the FAO Whole Rice Price Index averaged 127.8 points in May 2023, marking its highest level in nominal terms since October 2011. He also highlighted that the increase was mainly driven by the Indica species, which is predominantly consumed by Bangladeshis and other South and Southeast Asians. According to the report, "Indica quotes drove the index's rise in May, rising 3.2% above April values." The aromatic rice index also experienced an increase of more than 3.0 percent, while glutinous rice showed a 1.4 ...

Source: Planetaarroz