Prices of a vital food, rice, just surged to a fresh 15-year high

Thai white rice 5 per cent broken – an Asian benchmark – climbed for a third straight week to reach US$659 (S$871) a tonne on Dec 27, according to the Thai Rice Exporters Association. That is the highest since October 2008 and brings the increase in prices to about 38 per cent in 2023, after top shipper India restricted exports and dry weather threatened production.

Rice is vital to the diets of billions of people in Asia and Africa, and the latest run-up in prices could fan inflationary pressures and hike import bills for buyers. Some nations have been ramping up purchases to build sufficient stockpiles amid fears that the impact of El Nino will further tighten supplies in the coming months.

Indonesian President Joko Widodo said last week that Thailand will deliver as much as two million tonnes in 2024, while India has agreed to supply one million tonnes. Meanwhile, the Philippines is set to receive more than 500,000 tonnes of rice imported by the private sector until February.