India Sees Rice Price Surge as Global Demand for Food Reserves Grows

Rice prices in India have risen as geopolitical tensions between the U.S. and Iran drive global demand for food reserves. The price increase varies by variety: Basmati rice rose by 15-20%, while standard varieties increased by 20-25%. The surge is attributed to a domestic supply shortage caused by a shift toward exports amid global instability. Market participants expect prices to remain high until October or November, when the new harvest is scheduled for collection. Traders warn that further escalation of the conflict or disruptions to logistics could prolong the period of elevated prices.