FAO's Global Rice Price Index Climbs 1.4% in May

09-Jun-2025 01:59 PM

Rome. The global rice price index of the Food and Agriculture Organization (FAO), a United Nations agency, saw a slight increase last month, mainly due to a rise in demand and prices of Basmati rice. According to available data, FAO’s global average price index for all types of rice increased by 1.4 percent to 106.03 points in May compared to April.

FAO's report noted that strong demand for Basmati rice during May—particularly ahead of the Eid-ul-Adha (Bakrid) festival in Muslim-majority countries in early June—was a key factor behind the price increase. In contrast, the demand for other rice varieties remained normal, with prices either stable or showing only minor fluctuations.

Thailand’s Hom Mali rice exports to the United States were shielded from the impact of additional tariffs. Although these shipments were loaded in April, the U.S. administration postponed the new tariffs by 90 days. This led to some deals for May shipments, which contributed to a price uptick.

However, when compared to May 2024, the global average price index for all rice varieties fell sharply by 22.6 percent. Last year, India had imposed export bans on certain rice varieties and levied a 10 percent customs duty on non-Basmati Sela rice, causing global rice prices to spike. Since then, the Indian government has lifted all export duties, controls, and restrictions on rice, which has led to a softening of prices in the international market. India continues to be the world’s largest exporter of rice.