Asian Rice Prices Hit Two-Year High Amid Production Drop

Asian rice prices are rising toward a two-year high following projections of the first global production decline in more than a decade. The United States Department of Agriculture and the Food and Agriculture Organization both forecast a drop in world rice output for the 2026-27 season, driven by drier-than-usual weather linked to a powerful El Nino phenomenon.

Harvests in major producing regions, including India and Thailand, have been hindered by these weather patterns. The Thai Rice Exporters Association reported that 5% broken white rice from Thailand reached US$499 a tonne on Wednesday, the highest level since December 2024. Additionally, Chicago rough rice futures have increased by over 80% since the start of the year, a trend that contrasts with the declining costs of other grains such as corn and wheat.

These supply constraints are impacting retail markets in importing nations. Government figures indicate that rice prices in the Philippines, the world's largest importer, jumped 21% in October compared to the previous year.