(May 20): A benchmark Asia rice price rose to the highest in more than a year, as worries loom over harvests across the region.
Prices for Thai 5% broken white rice climbed to US$446 ($571.12) a ton as of Wednesday, the highest since February 2025, according to the Thai Rice Exporters Association. It marks a third weekly gain and comes after the US Department of Agriculture forecast global rice production in the 2026-27 season to decline for the first time in 11 years.
A spike in fertiliser and fuel prices has raised concerns that some farmers in Southeast Asia may skip planting of the current crop. India, the world’s largest exporter, is also facing the prospect of a lower-than-average monsoon. The country’s supply is grown during the annual rains, which are expected to be affected by the looming El Nino weather pattern.
The crop is a major food staple — particularly in Asia — and prices remain well below the multi-year peaks reached in 2024. However, the uptick at the wholesale level risks feeding into broader inflation, with nations including the Philippines already seeing costs climb.
Rice futures in Chicago this week reached the highest since August.
See also: Prabowo to tighten control of Indonesia’s commodity exports
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