Rice prices may rise next year
Friday, 18 December 2009
BANGKOK, Dec 17 (Commodity Online): Increasing demand and production cuts in major producers like India due to bad weather likely to shoot up global rice prices next year, according to Thailand Rice Exporters Association.
Prices on the global market could again near the record above $1,000 a tonne set in the middle of 2008, it said in statement issued here.
This month, export prices for Southeast Asian rice have jumped from about $550 a ton or less to more than $650.
The cost of rice is expected to climb over the coming months, as an improving global economy raises demand, and drought cuts production in countries such as India.
Some economists say prices for rice, the staple food for much of the world's population, could be returning to levels that sparked inflation fears in much of Asia last year.
Association said prices, especially for Thai rice are being pushed higher by new customers coming into the market after the economic slowdown of the past year.
There are many new markets for the Thai rice and also we still have for our old customer - China, some Arab countries - they will increase the demand. It said.
Thai Rice Exporters Association, further said weakness in the US Dollar also add to pressure on prices.
"The dollar weakness contributes to this; the rumors about weather conditions in India, in China, Australia, elsewhere, are also contributing," it said
Prices on the global market could again near the record above $1,000 a tonne set in the middle of 2008, it said in statement issued here.
This month, export prices for Southeast Asian rice have jumped from about $550 a ton or less to more than $650.
The cost of rice is expected to climb over the coming months, as an improving global economy raises demand, and drought cuts production in countries such as India.
Some economists say prices for rice, the staple food for much of the world's population, could be returning to levels that sparked inflation fears in much of Asia last year.
Association said prices, especially for Thai rice are being pushed higher by new customers coming into the market after the economic slowdown of the past year.
There are many new markets for the Thai rice and also we still have for our old customer - China, some Arab countries - they will increase the demand. It said.
Thai Rice Exporters Association, further said weakness in the US Dollar also add to pressure on prices.
"The dollar weakness contributes to this; the rumors about weather conditions in India, in China, Australia, elsewhere, are also contributing," it said