Rice will become cheaper in the new season

The benchmark price of rice in Asia has fallen to its lowest level in a decade, a situation that will reduce food costs for households and countries dependent on imports.

Bloomberg writes that, according to the Thai Rice Exporters Association, wholesale prices for Thai white rice with 5% defects fell 1.9% to $355 per tonne, the lowest since September 30, 2015.

Although export prices are not immediately reflected in retail prices, cheaper supplies from major producing countries such as Thailand can lead to cheaper rice, a staple food for Asia, Africa and parts of the Middle East. It is vital for billions of people and makes up 50% of the diet of many people in Southeast Asia.

Rice prices, which hit a 15-year high in 2024 on strong demand and supply concerns, are gradually easing as harvest forecasts improve.

Global rice production is expected to hit a record 556.4 million tonnes in the 2025-26 season, according to the UN Food and Agriculture Organization, leading to a build-up in stocks. Monsoon rains in India, the world’s largest rice exporter, are also improving the outlook for this season’s harvest. This could add to the global surplus and boost exports from the country. New Delhi had earlier lifted export restrictions on the crop to prevent a domestic glut.

Tags: prices, rice, Thailand