Global rice prices rose to a 15-year high in August, as top exporter India banned some overseas sales of the grain.
The Food and Agriculture Organization (FAO) in a report on Friday said it’s rice price index rose 9.8% in August from July, to its highest level since July 2008.
The index tracks the prices of rice in major export markets.
The FAO said the rise in rice prices was driven by uncertainty about the duration of India’s export ban, as well as concerns about other export restrictions.
India announced the ban in July, citing concerns about rising domestic prices. The ban affects non-basmati white rice, which accounts for around a quarter of India’s total rice exports.
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The FAO said the ban was likely to have a “significant impact” on global rice trade and prices.
Nigeria is a major importer of rice, and the rising global prices are likely to put further pressure on prices in the country.
Recall that in 2015, the Central Bank of Nigeria (CBN) stopped the importers of rice and 41 other items from accessing foreign exchange at the official window in order to encourage local production.
The Federal Government also banned rice imports across land borders and kept 70 per cent tariffs on imports coming through ports.
In line with these interventions, there was an increase in the local production of rice. However, it seems the increase will continue, with the global price increasing.
