Rice Prices Plummet Due to Oversupply

International rice prices are falling, reaching their lowest level since 2017, due to increased production and the lifting of export restrictions. This development is causing concern among Asian producers.

The reference price for Thai white rice 5% fell to $372.50 per ton, a 26% decrease since the end of last year. According to the FAO, the Rice Price Index has decreased by 13% since the beginning of the year.

India, the world's largest rice exporter, lifted export restrictions after a record harvest. However, demand is expected to decline, with Indonesia and the Philippines staying out of the market.

The price drop is positive for consumers but creates problems for producers, especially in countries without subsidy mechanisms. Analysts do not foresee an immediate reversal of the trend.

Indian government warehouses contained 60 million tons of rice in May, while New Delhi is channeling surplus stocks into the domestic market and ethanol production.

Source: ot.gr