2024-03-06 15:08:15
Since the beginning of 2024, rice prices in Indonesia have increased by more than 16 percent compared to 2023. Reuters reports about a sharp rise in price of the main product for the Asian region due to the El Niño weather phenomenon, Day.Az reports with reference to Lenta.ru.
Global climate problems have caused a shortage of rice – due to delays in planting and lack of rain, harvesting was delayed by a month. The grain shortage was 1.63 million tons in January and 1.15 million tons in February. Due to rising prices, the government of one of the most populous countries had to subsidize prices and limit sales to 10 kilograms per person. The authorities also provided an additional import quota of 1.6 million tons of rice on top of the 2 million previously approved.
According to insiders interviewed by Bloomberg, world rice prices may continue to rise due to the decision of the Indian authorities to extend the export duty on parboiled rice. This measure expires on March 31, but the authorities are ready to continue to fight food inflation in the country in this way.
India began restricting sales of key rice varieties in July 2023. Then the government imposed a ban on the export of white rice, except the basmati variety. Already in August, rice prices in Asia rose to a 15-year high amid growing concerns about falling supplies. Thus, Thai white rice rose to $648 per ton – this is a record level since October 2008.
Farmers in Asia are facing rice harvest failures due to drought across much of the region caused by the El Niño climate phenomenon. At the end of July, grain exchange prices in the Asia-Pacific region soared to a three-year high. The price of Thai white rice has jumped to $572 per ton amid a ban by Indian authorities on exporting all types of rice except the long-grain basmati variety from the country.