Asian rice production during the off-season is predicted to suffer due to a blend of unfavourable weather conditions including dry planting, dwindling reservoirs and ongoing El Nino weather patterns. These issues are due to reduce the early 2024 yields, further squeezing supplies and potentially causing a rise in food inflation.
Both India, the world’s largest rice exporter and Thailand, the second-largest supplier, are projected to witness a drop in off-season crop production in the first quarter. Meanwhile, Indonesia, a major importer, is grappling with drought conditions as farming activities kick off, according to traders and analysts, said Peter Clubb, an analyst at the International Grains Council in London.
“High prices should encourage planting but there are concerns about water availability from low reservoirs which could see…
