For the third year in a row, rice production has reached record levels, driving down prices of imported rice as a result, according to Bloomberg.
World food costs have fallen 10 percent since reaching record highs in February 2011, according to the United Nations, which gauges food costs across the world. Lower grain prices will help with inflation because rise is a staple for more than 3 billion people.
In November, the cost of benchmark 100 percent grade-B Thai rice was at a three-year high of $663 but has dropped 7 percent since, according to the article. Prices are currently falling because the harvest will be so big that exports can still grow 23 percent, allowing Thailand to overtake India and Vietnam as the world's largest shipper of rice, the USDA estimates.
"There is enough supply to meet all the demand in the world," Concepcion Calpe, a senior economist at the UN's Food & Agriculture Organization, where she is also secretary of the Rome-based group's intergovernmental body on rice, told Bloomberg. "There will be ground for a further in slide in prices."