Indonesian rice and Indian sugar hit new highs

Global food markets are experiencing an unprecedented rise in the prices of rice and sugar, driven by shipping disruptions related to the war and drought caused by the El Niño phenomenon. Indonesian rice has reached historic levels amid forecasts of delayed rainfall, while sugar prices in India have soared to all-time highs due to decreased production. Additionally, attacks on grain ports in the Black Sea and declining security along maritime routes have disrupted shipments and increased costs. Inflationary pressures are expected to persist throughout 2027, impacting consumers—particularly the most vulnerable— and raising the risk of social unrest. In response, exporting countries are resorting to imposing export bans to secure their supplies.

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