Global rice costs surge as harvest concerns mount across Asia

A benchmark Asia rice price has climbed to its highest level in more than a year as concerns grow over harvests across the region, Bloomberg reports.

Prices for Thai 5% broken white rice rose to US$446 ($571.12) per ton as of May 20, the highest since February 2025, according to the Thai Rice Exporters Association. The increase marks a third consecutive weekly gain and comes after the US Department of Agriculture forecast that global rice production in the 2026–27 season will decline for the first time in 11 years.

A surge in fertiliser and fuel prices has raised concerns that some farmers in Southeast Asia may skip planting the current crop. India, the world’s largest exporter, is also facing the prospect of below-average monsoon rainfall. The country’s rice supply is heavily dependent on the annual rains, which are expected to be affected by the looming El Niño weather pattern.

The crop remains a major global food staple, particularly in Asia, and prices are still well below the multi-year peaks reached in 2024. However, the recent rise at the wholesale level risks feeding into broader inflation, with countries including the Philippines already experiencing higher costs.

Rice futures in Chicago this week also climbed to their highest level since August.

By Vafa Guliyeva