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Rice Prices At Highest Levels Since 2013

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Rice Prices At Highest Levels Since 2013

Rice and wheat prices are rising during the coronavirus pandemic. 

Rice Jumps In Price Despite Ample Supply

Labor scarcity, export disruptions, panic consumer buying and crop worries from lockdowns in North America and Europe have led to price movements in rice and wheat, resulting in higher food price inflation in 2020, CNBC reported.

The price of the industry benchmark 5% broken white rice surged 12.3% to $564 per metric ton as of April 1 on a week-over-week basis, although crop production and carry-over stocks are at peak levels, according to CNBC. 

Benchmark wheat futures on the Chicago Board of Trade were up 4.5% month-over-month to $546 as of Wednesday.

Coronavirus Disruption In India, Vietnam

Demand for Thai rice is expected to surge in the upcoming weeks as India and Vietnam face export interruptions during the pandemic. 

Asia produces and consumes almost 90% of the world's rice supply.

Indian rice traders have discontinued new export contracts amid labour shortages and transport issues, according to Reuters.

In India and South Asia, it is harvesting time for winter crops such as wheat, potato, cotton and some fruits and vegetables for which labor is needed to operate machinery and undertake manual activities.

“If the planting season is missed, there will be no crop for the season or for the entire year,” Samarendu Mohanty, Asia regional director at the Peru-based International Potato Center, said in a blog post quoted by CNBC.

 

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