The world is facing the worst shortage of rice in 20 years, according to data from forecasting agency Fitch Solutions.
Rice production is falling throughout the world, driving up prices for more than 3.5 billion people who depend on it as a staple in their diet.
The price of rice is currently averaging $17.30 per cwt, and is unlikely to decline until 2024, according to Fitch Solutions. (Cwt is a unit of measurement for certain commodities such as rice).
Fitch is forecasting a global shortfall this year of 8.7 million tonnes of rice. That would be the largest global rice deficit since 2003.
The rice shortage is being blamed on war in Ukraine, as well as bad weather in rice-producing nation such as China and Pakistan. Last year, China was hit with heavy monsoon rains.
At the same time, major European rice-producing countries such as France and Germany have been hit by the worst drought in 20 years.
Lower rice production in other countries such as Canada and the U.S. have also contributed to the current deficit, said Fitch Solutions.
The forecasting agency estimates that the global rice market will return to a more normal state in 2024.
