World rice prices surge to near 12-year high

The United Nations food agency's All Rice Price Index in July increased by 2.8% compared to the previous month and by 19.7% compared to a year ago, to reach its highest nominal level since September 2011, the Food and Agriculture Organisation (FAO) reported on Friday.Global food commodity prices rose last month, influenced by the termination of the Black Sea Grain Initiative and new trade restrictions on rice, the FAO said.According to the latest official figures, rice inflation in Namibia rose to 10.0% in June, up from 7.1% the previous month. In June 2022, rice inflation in the country stood at -3.8%, data from the Namibia Statistics Agency (NSA) shows.India is Namibia’s second largest rice import market, according to 2022 data provided by the NSA. South Africa is Namibia’s top import market for rice.Staple inflationOver the past 12 months, rice spent four months in deflation. It returned to inflationary territory in December 2022, registering a rate of 2.4%. Rice inflation has been spiking since, peaking at 11.3% in February this year.Out of the nine items comprising overall bread and cereals inflation in Namibia, six recorded double-digit inflation in June. Inflation for maize and meal/grain was the highest, printing 23.4%.Overall bread and cereals inflation during the month under review came in at 17.3%, compared to 7.0% in June 2022. Overall food inflation in Namibia in June was 12.0%, compared to 13.0% the previous month and 7.1% a year ago.Food and non-alcoholic drinks carries the second biggest weight in the Namibian consumer basket. Out of every N$100 in the average Namibian’s pocket, N$16.45 is spent on food, while N$28.36 go towards housing, water, electricity and gas.Overall annual inflation in Namibia in June was 5.3%, down from 6.3% the month before and 6.0% in June 2022.Global sceneThe FAO All Rice Price Index, which tracks prices in key exporting countries, averaged 129.7 points in July against 126.2 points for the previous month.The July score was almost 20% higher than the last year's 108.4 points and the highest since September 2011.The agency's overall world food price index also rose in July, rebounding from two-year lows.India, which accounts for 40% of world rice exports, last month ordered a halt to its largest rice export category to calm domestic prices, which climbed to multi-year highs in recent weeks as erratic weather threatens production.India, Thailand, Vietnam, Cambodia and Pakistan are among leading exporters of rice. China, Philippines, Benin, Senegal, Nigeria and Malaysia are key importers of the staple.This upward pressure of rice prices “raises substantial food security concerns for a large swathe of the world population, especially those that are most poor and who dedicate a larger share of their incomes to purchase food,” the FAO warned.It added that export restrictions can bear adverse consequences on production, consumption and prices that last beyond the duration of their implementation and risk exacerbating high food domestic inflation in many countries. - Additional reporting by Fin24/Reuters

World rice prices surge to near 12-year high

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