The El Nino weather phenomenon underway is one of the most powerful on record and linked to drier conditions across much of South and Southeast Asia. (EPA Images pic)BANGKOK: A benchmark Asian rice price climbed to the highest in almost two years, threatening to accelerate food inflation as the El Nino weather pattern disrupts production of the staple grain.
Farmers across much of Asia are in the midst of harvesting the grain, and drier-than-usual weather has proven a hurdle for crops in growers like India, the world’s leading exporter. Global production is expected to decline this season for the first time in over a decade, the US agriculture department forecasts.
That’s pushing prices higher, with 5% broken white rice from Thailand -- another major shipper -- rising to US$499 a tonne as of Wednesday, the highest since December 2024, according to the Thai Rice Exporters Association. Rough rice futures in Chicago are also up more than 80% since the start of the year.
