Rising Rice Prices and India's Export Ban Threaten Food Security in Southeast Asia

Abstract

The imposition of an export restriction on non-basmati rice by India, which came into effect on July 20, had far-reaching repercussions within the global rice market. The effects were particularly pronounced in the case of Thai white 5% broken rice, which serves as a critical benchmark in Asia. Its prices skyrocketed to an astonishing high, reaching a peak not witnessed in over 15 years, as they surged past the $650 per ton mark. This surge represented a substantial 50% increase from the comparatively modest $400 per ton price observed at the close of November. India's decision to curtail its non-basmati rice exports exerted a profound influence on the dynamics of the international rice trade, triggering significant price fluctuations and impacting stakeholders across the globe.