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Rice prices surge to 7-year high as coronavirus sparks stockpiling

Trade News by Trade News
April 7, 2020
in Business
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Rice prices surge to 7-year high as coronavirus sparks stockpiling
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Women plant rice saplings at a paddy field at Baghmara village in Baksa district of Assam, India.

David Talukdar | NurPhoto | Getty Images

The price of rice — a staple food in Asia — has hit 7-year highs due to the coronavirus outbreak as importers rush to stockpile the grain while exporters curb shipments.

According to the Thai Rice Exporters Association, price of the 5% broken white rice — the industry benchmark — rose 12% from March 25 to April 1. Rice prices are now the highest since late April 2013, according to Reuters data.

The rise in prices is due to expectations of higher demand for Thai rice after fellow top exporters India and Vietnam both face export disruptions of the strategic staple food due to the outbreak of the coronavirus disease, formally known as COVID-19. Asia produces 90% of the world’s rice supply and consumes the same amount.

In India, rice traders have stopped signing new export contracts as labour shortages and logistical disruptions hamper…



Source cnbc.com

Tags: 7YearcoronavirushighpricesRiceSparksstockpilingsurge
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