According to Reuters reported on August 4, the Food and Agriculture Organization of the United Nations said on the 4th, with the main exporting countries domestic rice prices due to strong demand rose as well as India to take measures to limit exports, the organization's rice price index in July rose by 2.8% from the previous month, reaching the highest level in nearly 12 years.

　　The FAO All-Rice Price Index, which tracks rice prices in major exporting countries, averaged 129.7 points in July, up from 126.2 points the previous month, the organization said.

　　The July average of the index was almost 20 percent higher than the 108.4-point average for all of last year and was the highest since September 2011, the FAO said.

　　The U.N. Food and Agriculture Organization's comprehensive world food price index also rose in July, rebounding from a two-year low position.

　　India, which accounts for 40% of the world's rice exports, ordered the suspension of exports in its largest rice category in July to calm domestic rice prices. Domestic rice prices in India have risen to multi-year highs in recent weeks as unusual weather conditions jeopardize production.

　　India, Thailand, Vietnam, Cambodia and Pakistan are also major rice exporters. China, the Philippines, Benin, Senegal, Nigeria and Malaysia, on the other hand, are important importers of this major food variety.

　　Also according to the "Nihon Keizai Shimbun" reported on August 4, for including rice and wheat, including food supply may tighten the worry is growing stronger. The world's largest rice exporter India in order to prioritize to ensure domestic supply, called a halt to the export of rice in addition to some high-end varieties. The price of Thai rice exports, an indicator of the significance of the Indian export ban, climbed sharply after the release of the ban, hitting an 11-year high. Wheat prices also hit a five-month peak in late July. The risk of another global food inflation is rising.

　　Thailand 5% broken rate of white rice fob price as of July 27 rose to 607.5 U.S. dollars per ton, than July 20, India announced a ban on rice exports rose 62.5 U.S. dollars, an increase of 11.5%, a record high since May 2012.

　　The opportunity that led to the spike in rice prices was mainly the decision of India, the world's top rice exporter. India's Ministry of Consumer Affairs, Food and Public Distribution issued a public notice on July 20 to increase exports led to domestic rice prices, announced that in order to "lower prices and ensure domestic consumption", in addition to Indian rice and other high-end varieties of rice exports are prohibited.

　　This move has a significant impact on global rice supply and demand. USDA statistics show that India's rice exports in 2022 to 2023 years reached 22.5 million tons, accounting for 40% of the global market, while the same period, second only to India's Thailand exports only 8.5 million tons.

　　The El Niño phenomenon, which has reappeared after seven years, has pushed up the risk of a rice crop failure, because at the time of the El Niño event, sea surface temperatures in the equatorial waters of the Pacific Ocean were abnormally high, and Southeast Asia, where rice is mainly grown, feared that the lack of precipitation would trigger a drought.

　　Some forecasts show that global rice stocks will fall to 170.42 million tons at the end of 2023 to 2024, a new low since 2017 to 2018, as supply decreases. And there is a risk that the forecast will be revised down further as weather conditions change. The reduction in stocks has in turn triggered market concerns about tight supply and demand, potentially triggering a continued surge in international rice prices.

　　The supply of wheat, another major grain that now sits alongside rice, is also likely to be volatile.

　　In late July, has the significance of the indicators of the United States Chicago Mercantile Exchange wheat futures September contract once closed at $ 7.7 per bushel, the highest value since late February.

　　International rice prices in last year's Russian-Ukrainian conflict led to the outbreak of wheat and other grains prices soared at the time to maintain a relatively stable, on the intensification of the global food crisis has played a certain role in alleviating. With wheat and rice supply constraints occurring at the same time, it will be difficult to find cheap alternative options in the event of future shortages of both rice and wheat.

　　From 2007 to 2008, the prices of major crops, such as rice and wheat, rose at the same time, and the interaction between agriculture and inflation triggered the so-called "agri-inflation" of high prices led by agricultural products.

　　Once agroinflation returns, the most affected countries will undoubtedly be those emerging countries in Africa and elsewhere that are economically depleted and heavily dependent on food imports. If international food prices skyrocket, these countries will be unable to purchase enough food due to insufficient foreign exchange reserves, which may also exacerbate domestic inflation and lead to large-scale famine.