Rice prices rise to the highest level since 2008 as threat to supply persists in Asia

Rice prices soared to the highest since 2008 in Asia as threat to supply persists. Concerns over a tight global supply mount as a dry spell threatens production in Thailand and after top shipper India banned non-basmati rice exports.

As per Thai Rice Exporters Association, Thai white rice 5% broken jumped to $648 a ton, the most expensive since October 2008. This rice is the Asian benchmark.

Also Read: Rice prices already at an eleven year high, expected to rise further

Thailand which is the second largest rice exporter is also encouraging its farmers to switch to crops that need less water as the nation braces for drier conditions with the onset of El Niño. This comes as Thailand's main central growing area saw a 40% below normal rainfall and the government is looking to conserve water for household. This, however has caused supply disruption.

Last month India banned the export of non-basmatic rice to protect domestic interest sending shock waves across the globe. This price surge is expected to add more stress to the food inflation.