International prices of rice continued to decline in August on the back of slow demand and the arrival of new crop supplies, the United Nations Food and Agriculture Organization (FAO) reported.

The FAO said prices of Thai 100-percent B-grade white rice, the world’s main benchmark for global trade, fell to an average of $796 a ton FOB (free-on-board) in August from $835 in July and $870 in June.

The August average was still up 138 percent from $335 a ton a year earlier.

Prices of the staple reached its peak in May, averaging at least $963 a ton FOB, owing to a number of global factors.

Restrictions on rice shipments by leading exporting countries—along with higher costs of oil and farm inputs, rising global demand, drought and price speculation—are said to have partly fueled concerns over the supply of the staple, pushing prices to record levels.

Last month the Thai government said it was considering selling 2.1 million tons of rice in September, the FAO report said. Edited by INQUIRER.net