Food prices have been on the rise since the past few months and rice, a staple food of Asia, could be next, industry experts said.
The cost of various foods, ranging from wheat and other grains to meat and oils, are soaring high. Rice could be next in line. The United Nations’ Food and Agriculture Organization Food Price Index shows international rice prices soaring high for the 5th continuous month to a 12-month rise, according to the latest May data published last week.
Rice production is still abundant, experts said. But rising wheat prices, and the higher costs of farming, can make rice prices worth monitoring next.
“We need to monitor rice prices going forward, because rising wheat prices could lead to some substitution towards rice, increasing demand and lowering existing stocks,” said Sonal Varma, chief economist at Japanese bank Nomura.