Rice prices in near future, an analysis of UN Report
Added on July 6, 2015 under News & Updates
Why rice prices are so dearer for many? Isn’t it just a day to day commodity for human consumption. Why world speculate on future food prices of any commodity? For any country, Is food security is such a big matter similar to security of borders of that country.
Yes, food is a fuel for human body and a business opportunity too. Recently I came across an article in leading Indian Newspaper daily mentioning UN Report on Foodgrain prices over the decade. The report broadly says the price will see steady decline. Below is the snapshot of report analysis by TOI.
The report is broadly based on rise in agricultural production in coming decade due to innovative methods to enhance yields, and increase in cultivation area. The expected decline in energy prices which further decline fertilizers cost likely to contribute in decline of overall farm production cost and hence foodgrain prices will be set in tune with declining prices.
The report further outlines that rise in production of Wheat and Rice by 2024 will be 10% to 15% from production level in year 2014 and Asia will continue leading the rice export to rest of the world, but Indian Rice export may not be contributing similar when compared to other Asian countries like Pakistan, Thailand, Vietnam. If we go by this report then the prices are not expected to rise in normal course but any unexpected crisis due to drought, floods, wars, currency fluctuation, international policy may bring some movement in prices which can not be ignored while planning any food strategy for coming decade.
It is however a welcome news for everyone belonging to rice export & import business, as the rice market outlook for next decade seems to be stable and it will further strengthen the rice industry fundamentals. Lets hope the turbulence in Indian rice industry also settles in coming years and gains new height in rice exports.