Global rice prices have dropped to their lowest level in eight years due to record harvests and India lifting export restrictions, increasing supply and pressuring farmers across Asia.
Export prices for Thai 5 percent broken white rice, the global benchmark, recently fell to $372.50 per tonne, down 26 percent since late last year. The United Nations Food and Agriculture Organization’s rice price index is down 13 percent this year.
India’s record 2023-24 harvest and policy shift to resume exports were key factors, along with strong production in Thailand and Vietnam, analysts said. Meanwhile, demand has weakened as Indonesia and the Philippines have limited imports.
India’s advances in irrigation and support programs have boosted production resilience and encouraged farmers to expand rice cultivation. Farmers in other countries face challenges from low prices and rising costs.
Consumers may benefit from lower prices easing inflation. However, prices could fall further amid abundant stocks and ongoing large harvests.