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The global rice market: Where is it going? PDF Print E-mail
Tuesday, 19 January 2010

Samarendu Mohanty, Head and Senior Economist
Social Sciences Division

Global rice prices started moving upward in November 2009 after months of steadily declining since reaching their all-time high in May 2008. Supply problems in some major rice-producing countries, namely, India and the Philippines, have been the primary reason for this reversal of price trend. Two major typhoons hit the Philippines in late September and early October, causing damage to rice crops on the ground and also in storage to the tune of one million tons. Similarly, the worst drought in India since 1972 is estimated to have reduced the 2009 kharif (wet-season) crop by at least 15 million tons from a total of 85 million tons in the previous kharif season.

The supply problem has been compounded by major foods caused by torrential rains in the southern states of Andhra Pradesh and Karnataka. Unfortunately, Andhra Pradesh, one of the major rice-growing states in India, was affected frst by drought and then by food. According to the Hindu Business Online last 17 October 2009, the state government placed the current kharif crop at 4.8 million tons compared with 8.3 million tons in 2008.

[ Read the Rice Today Article (PDF) ]

A background paper by the International Rice Research Institute (IRRI) 
Responding to the Crisis The rice crisis is a major concern for half the world's population. This paper explains the reasons behind the rapid increase in rice prices and what must be done to achieve reliable, plentiful supplies of affordable rice.

What is happening?

The poorest of the world’s poor are the 1.1 billion people with income of less than a dollar a day. Around 700 million—almost two-thirds—of these people live in rice-growing countries of Asia. Rice, the dominant staple in Asia, accounts for more than 40% of the calorie consumption of most Asians. Poor people spend as much as 30–40% of their income on rice alone.  Ensuring sufficient supplies of rice that is affordable for the poor is thus crucial to poverty reduction. Given this, the current sharp increase in rice price is a major cause for concern.  Read more...