Rice prices in Asia have risen sharply amid the war in Iran

Rice prices in Asia have seen their steepest rise in more than two years on supply concerns. The main factor has been the rise in fuel and fertilizer prices amid the war with Iran, which has already started to affect production and farmer behavior in the region.

In particular, the benchmark Thai white rice (5% broken) rose 10% in the week to $423 per tonne, the biggest weekly gain since August 2023. At the same time, the market has been under pressure for a long time and prices have remained near their lowest levels in more than a decade.

Analysts note that rising costs are already forcing some farmers to change their behavior. In Thailand, some producers are suspending rice cultivation because revenues no longer cover rapidly rising production costs.

The situation is further complicated by a prolonged dry season that has negatively affected yields and reduced market supply. This creates additional pressure on prices and increases the risk of shortages in the near term.

In addition, rising logistics costs, insurance costs and the strengthening of the Thai baht amid instability in the Middle East are also contributing to higher rice prices. Taken together, these factors are creating a new wave of price pressure on the global food market.

Tags: prices, rice