The price of rice has seen sharp increase in recent months, reaching its highest level in nearly 12 years. The Food and Agriculture Organization of the United Nations (FAO) said that the FAO All Rice Price Index rose 2.8 per cent in July from a month ago, to an average of 129.7 points, Reuters reported. This is almost 20 per cent higher than the same time last year, and the highest level since September 2011.
There are a number of factors contributing to the rising price of rice such as strong demand for rice. Another factor is the recent move by India to curb exports, which has reduced the supply of rice on the global market. Moreover, erratic weather conditions in some rice-producing countries have also led to lower yields, which has further tightened the supply.
It is to be noted that India, which accounts for 40 per cent of world rice exports, last month ordered a halt to its…
