Global rice prices surged to a 15-year high in August following India’s decision to ban certain overseas sales of the grain, the Food and Agriculture Organization (FAO) said on Friday.
While global food prices saw a decline in August, rice prices experienced a significant uptick of 9.8 percent compared to the previous month.
The increase is attributed to “trade disruptions in the aftermath of a ban on Indica white rice exports by India,” according to the FAO’s monthly report.
“The FAO All Rice Price Index rose by 9.8 percent from July to reach a 15-year nominal high, reflecting trade disruptions in the aftermath of a ban on Indica white rice exports by India, the world’s largest rice exporter.
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“Uncertainty about the ban’s duration and concerns over export restrictions caused supply-chain actors to hold-on to stocks, re-negotiate contracts or stop making price offers, thereby limiting most trade to small volumes and previously concluded sales,” the report said.
The report also noted an increase in Sugar Price by 1.3 percent from July, averaging in August as much as 34.1 percent higher than its value a year ago.
“The increase was mainly triggered by heightened concerns over the impact of the El Niño phenomenon on sugarcane crops, along with below-average rains in August and persistent dry weather conditions in Thailand.
“The large crop currently being harvested in Brazil limited the upward pressure on international sugar quotations, as did lower ethanol prices and the weakening of the Brazilian Real.”
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Meanwhile, the report indicated notable decrease in global foods like Vegetable Oil, Cereal, Dairy, and Meat Prices, by 3.0 percent, 3.8 percent, 4.0 percent and 3.0 percent respectively.
GOOD EVENING NIGERIA reports that the FAO Food Price Index, which tracks monthly changes in the international prices of globally-traded food commodities, said International food commodity prices cumulatively declined in August by 2.1 percent from July and as much as 24 percent below its March 2022 peak.