Rice plunges the most in 16 years after India eases export curbs

RICE prices tumbled the most in more than 16 years in Asia as concerns over supply eased after India relaxed some export restrictions.

Thai white rice 5 per cent broken – an Asian benchmark – plunged about 11 per cent to US$509 a tonne on Wednesday (Oct 2), according to the Thai Rice Exporters Association. That was the biggest decline in data compiled since May 2008, and extended a prolonged slide in prices to the lowest level in more than 15 months.

Rice rallied last year after top shipper India implemented export restrictions to contain local prices ahead of an election. The Asian nation loosened some curbs following recent national polls, a move that could help ease a domestic glut and cut import costs for countries such as Indonesia and Senegal.

The grain is vital to the diets of billions and contributes as much as 60 per cent of the total calorie intake for people in parts of South-east Asia and Africa. While the price of rice has cooled, the costs of other food staples are rising as extreme weather threatens harvests around the world. BLOOMBERG