World rice price index jumps to near 12-year high after Indian export ban

The United Nations Food and Agriculture Organisation reported a 2.8% increase in their rice price index last July, reaching its highest level in over 12 years.

Rising demand and export restrictions enforced by India in key rice-exporting countries drove this spike.

The Food and Agriculture Organization’s (FAO) All Rice Price Index, which tracks prices in major exporting countries, averaged 129.7 points in August, up from 126.2 points the previous month.

The July score was approximately 20% higher than the same period last year, and it was the highest since September 2011, highlighting the global rice market’s persistent troubles.

In July, the agency’s total world food price index increased, rising from two-year lows.

India, which accounts for 40% of global rice exports, halted its main rice export category last month to cool domestic prices, which had risen to multi-year highs in recent weeks due to irregular weather.

Rice exports include India, Thailand, Vietnam, Cambodia, and Pakistan. The staple is heavily imported by China, the Philippines, Benin, Senegal, Nigeria, and Malaysia.

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