Sharp changes in the rice market: prices have reached a 15-year high

Rice planting and its prices have become the object of attention recently, when the market has seen an extremely sharp increase in prices. According to the latest reports, rice prices have risen sharply, reaching their highest level in the last 15 years.

According to the Rice Exporters Association of Thailand, the price of Thai 5% refined white rice, which is the Asian benchmark, has been rising for the third week in a row and reached $659/t on December 27.

Among the factors that led to this jump in prices, a number of circumstances can be identified. First, bad weather in key rice-growing regions led to a decline in yields. Downpours and floods in certain areas have significantly affected the agricultural sector, limiting rice production and leading to rice shortages.

In addition, global demand for rice continues to grow, especially in high-population countries where this product forms a major part of the diet. Rapid population growth and changes in eating habits contribute to increased demand, which, in turn, affects rice prices.

The situation is also reinforced by increased interest in alternative uses of rice, such as biofuel production. This further supports the high demand for rice and creates tension in the market, which determines its further development.

Governments of rice-producing and exporting countries also face challenges in price management and market regulation. Price increases can lead to social and economic hardships for the population, and therefore balanced solutions must be found to ensure market stability and rice availability.

In the future, forecasting the situation on the rice market remains a difficult task, as it is determined by a large number of factors. However, it is necessary to consider the possibility of adopting strategies to reduce market vulnerability and maintain rice price stability.