Soaring rice prices stretch budgets for billions in Asia, Africa
rice prices to the highest level in almost 15 years is renewing fears that food costs are going to get a lot more expensive for the world’s poorest people. The grain is vital to the diets of billions in Asia and Africa. Rice contributes as much as 60% of total calorie intake for people in parts of Southeast Asia and Africa, and that rises to 70% in countries like Bangladesh.
The latest price jump increases stress on global food markets already roiled by extreme weather and the escalating conflict in Ukraine. Thai white rice 5% broken, an Asian benchmark, climbed to $648 a ton this week as dry weather threatens Thailand’s crop, and after top shipper India — which accounts for 40% of the world’s trade — ramped up export curbs to protect its local market. “Higher rice prices will contribute to food inflation, particularly for poor households in the major rice consuming nations of Asia,” according to Joseph Glauber, a senior fellow at the International Food Policy Research Institute in Washington.
“Countries often follow suit when one country imposes export bans. The world’s poor are the biggest losers.”Mounting concerns over tighter global supply are amplifying risks of a fresh wave of trade protectionism as governments look to ensure ample food reserves. The return of the El Niño weather pattern, which could dry up water-dependent rice crops in Asia, is exacerbating those fears.
“Rice is a more valuable commodity than before El Niño started up and Russia escalated its attacks on Ukraine’s wheat and corn exports,” said Peter Timmer, Professor Emeritus at Harvard University, who’s studied food security for decades. Prices could climb a further $100 a ton in six-to-12 months, he said. “The big question is whether the price
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