Impending Global Rice Shortage Is Expected To Be the Worst In 20 Years

While the grocery store shelves might not look like it yet, rice production is falling around the world. As a result, the cost is gradually increasing, especially in Asia-Pacific where 90% of the world’s rice is consumed. At the global level, we’re approaching the worst rice shortage the world has seen in two decades. There are several reasons for the rice shortage, with the war in Ukraine and poor weather conditions in rice-producing areas like China and Pakistan being the biggest reasons. With that being said, there is a ray of light. It's estimated that the rice market will mostly balance out sometime next year, which means rice inflation will decrease. Although that will bring the price back into a more affordable range, it still won’t be as low as pre-COVID prices.