Prices of a Vital Food, Rice, Just Surged to a Fresh 15-Year High

(Bloomberg) -- Rice prices surged to a fresh 15-year high, fueled by strong demand and lingering supply concerns.

Thai white rice 5% broken — an Asian benchmark — climbed for a third straight week to reach $659 a ton on Wednesday, according to the Thai Rice Exporters Association. That’s the highest since October 2008 and brings the increase in prices to about 38% this year, after top shipper India restricted exports and dry weather threatened production.

Rice is vital to the diets of billions of people in Asia and Africa, and the latest run up in prices could fan inflationary pressures and hike import bills for buyers. Some nations have been ramping up purchases to build sufficient stockpiles amid fears that the impact of El Niño will further tighten supplies in the coming months.