The monthly Food Price Index, which measures international prices for a basket of food commodities, fell for the seventh time this year despite a nearly 10% surge in rice prices, said the UN Food and Agriculture Organization. Rice prices are at a 15-year high because of India’s decision to restrict exports of non-basmati white rice.

The monthly Food Price Index, which measures international prices for a basket of food commodities, fell for the seventh time this year despite a nearly 10% surge in rice prices, said the UN Food and Agriculture Organization. Rice prices are at a 15-year high because of India’s decision to restrict exports of non-basmati white rice.

India is the world’s largest rice exporter, accounting for up to 40% of rice on the world market. Rice trade declined after India announced export controls in July. The FAO said “uncertainty over the ban’s duration and concerns that export restrictions would be extended to other rice types” drove up prices along with the effect of tight supplies ahead of this year’s rice harvest.

The Food Price Index reading of 121.4 points for August was a drop of 2.1% from the previous month and was 24% the peak of March 2022, immediately after Russia invaded Ukraine and disrupted grain shipments from the Black Sea region.

In a companion report, the FAO said cereal grain production would total 2.815 billion tonnes in 2023/24, on par with the 2021 record. The world wheat crop would be the second-largest ever and feed grains would total 1.511 billion tonnes — 2.7% larger than last season. The stocks-to-use ratio for cereal grains would remain at comfortable levels.

Published Date: September 12, 2023