People have to eat less rice, the price of rice is getting more expensive!

<p>&nbsp;A string of Indian rice export bans and adverse weather conditions that could affect production, rice prices have soared to a 12-year high.</p><p><br /></p><p>According to the United Nations food agency, the Food and Agriculture Organization (FAO) All Rice Price Index for July increased by 2.8% to 129.7 points.</p><p><br /></p><p>The figure is up 19.7% from a year ago, and the highest nominal value since September 2011. Data from the FAO shows the sharpest price increase is Thailand.</p><p><br /></p><p>Concerns over the potential impact of El Nino on production by some suppliers have lent further support to rising prices, according to the report.</p><p><br /></p><p>It is also affected by disturbances caused by rainfall and quality variability in Vietnam's ongoing summer-autumn harvest.</p><p><br /></p><p>In the meantime, prices were also affected by India's move to ban the export of non-basmati white rice last month to help ensure the availability of sufficient supplies and moderate price increases in the domestic market.</p><p><br /></p><p><br /></p><p>As the world's leading rice exporter, India accounts for more than 40% of global rice trade.</p><p><br /></p><p>Although it affected a portion of India's overall rice shipments, the FAO stated that the export restrictions 'raise significant food security concerns for a large part of the world's population'.</p><p><br /></p><p>Rice prices hovered at a decade high, with crude rice futures last trading at $16.02 per hundredweight (cwt).</p><p><br /></p><p>Analysts believe rice prices will continue to see an increase in August compared to last month.</p><p><br /></p><p>Oil prices have the potential to jump further if other countries follow India's lead in implementing export restrictions.</p><p><br /></p><p>While El Nino could worsen global production risks in other major Asian rice producers such as Thailand, Pakistan and Vietnam.</p>