UK: Experts Warn Of Rise In Consumer Rice Prices

Rice millers' group in United Kingdom have warned that rice prices could go even higher if supply tightness continues in the current year forcing businesses to pass on price increases to the final consumer.

Global rice prices have risen 70% over the last two years. And for specialist rice like Basmati, which makes up 30% of the U.K. rice market, prices are up as much as 120% from the previous crop season.

Exaggerating the tightness, over the last couple of months major rice producing countries such as India and China have imposed severe export restrictions in order to retain supplies for domestic consumption while Vietnam and Egypt have banned rice exports altogether.

The UK share of total European imports of husked rice was 20 % for the 2006/07 marketing year, according to the Brussels-based Federation of European Rice Millers.