FAO’s All Rice Price Index

August 5, 2023

GS Paper II Indian Polity and Governance

Context:

The United Nations Food and Agriculture Organization (FAO) reported that the rice price index rose by 2.8 percent in July from the previous month, reaching its highest level in nearly 12 years.

Reason for Price Surge:

India’s Export Restrictions:
- India, accounting for 40 percent of world rice exports, imposed a halt on its largest rice export category to stabilize domestic prices.

About Rice Price Index:

It was introduced in 1996 , with the purpose of monitoring developments in the global agricultural commodity markets.
Released by: United Nations Food and Agriculture Organization (FAO)
Measurement: The FFPI is a measure of the monthly changes in international prices of a basket of food commodities.
Commodities Included: The index tracks changes in prices for a basket of key food commodities, including cereals, oilseeds, dairy products, meat, and sugar.
Base Period: 2014-2016

Current Rice Exporters and Importers

Leading rice exporters include India, Thailand, Vietnam, Cambodia, and Pakistan.
Key rice importers are China, Philippines, Benin, Senegal, Nigeria, and Malaysia.

News Source: Economic Times