An excess supply of rice from Thailand will help boost global stockpiles and cap prices, the Food and Agriculture Organisation (FAO) said, which will lower record food costs that pushed millions into poverty.
Food prices, worldwide had reached a record in February, driving 44 million people into poverty, as estimated by the World Bank last month. Rice is the staple food for half the world and this will ease global inflationary pressures and reduce costs for buyers around the globe.
Rice is lagged behind as corn and wheat rallies as harvest disruptions and stronger demand. While competition from rice supplies from Vietnam can also depress the rice prices from Thailand further.
?There is enough production in the world to keep prices down,? says Concepcion Calpe, a senior economist at the United Nations? agency. Thai supplies may be ?abundant? this year, with rising output helping to boost reserves.