Prices for rice are at their highest level in 12 years as global demand for the food staple surges and adverse weather around the world negatively impacts production.
The spike in rice prices also comes as India, the world’s top producer of the grain, institutes a rice export ban.
The Food and Agriculture Organization All Rice Price Index for July rose nearly 3% to 129.7 points.
Global prices for rice are now up 19.7% from a year ago, and at their highest level since September 2011.
Storms and other troubling weather conditions around the world caused by an El Nino climate event have hurt rice production all over the world.
India, the world’s leading rice exporter, banned all exports of non-basmati white rice on July 20 of this year as the government tries to cap soaring food prices and ensure enough supply domestically.
India accounts for more than 40% of the global rice trade, according to the United Nations.
Exacerbating problems, Thailand, the world’s second largest exporter of rice, is now asking its farmers to plant less rice in order to save water as a result of low rainfall in that country.
Many analysts say rice prices could climb higher in the coming months as inventory levels decline throughout the world, especially in Asia.
If other countries follow India’s lead and also implement export restrictions, it could send rice prices spiralling upwards, warns the United Nations.
