Tue, Apr 8, 2025

Global rice prices drop

International
Global rice prices drop

Editorial Post Desk: Global rice prices fell on Monday after India, the world’s No.1 exporter of the grain, gave the go-ahead for exports to resume, boosting global supply and helping poor Asian and African buyers secure more affordable supplies, exporters said.


India on Saturday allowed exports of non-basmati white rice. That came a day after New Delhi cut export duty on parboiled rice to 10 percent, buoyed by a new crop in the offing and higher inventories in state warehouses.


“Suppliers from Thailand, Vietnam, and Pakistan are responding to India’s move by lowering their export prices,” said Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter.Everyone’s trying to stay competitive to hold their spot in the market.”


Global rice prices soared to their highest level in over 15 years following India’s decision last year to ban the export of white rice and impose a 20 percent duty on parboiled rice exports.


Last year’s export curbs imposed by India allowed competing suppliers like Vietnam, Thailand, Pakistan, and Myanmar to increase their market share and command higher prices in the global market.


On Monday, India’s 5 percent broken parboiled variety was quoted at $500-$510 per metric ton, down from the last week’s $530-$536. Indian 5 percent broken white rice was offered around $490. Exporters in Vietnam, Pakistan, Thailand and Myanmar also lowered prices by at least $10 per ton on Monday, dealers said.


The Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia are among the key importers of Asian rice. Buyers and sellers are evaluating the potential impact of increased Indian rice supplies and accordingly prices would settle this week, said Nitin Gupta, senior vice president of Olam Agri India.


India accounted for more than 40 percent of the world’s rice exports in 2022, a record 22.2 million metric tons out of a total 55.4 million metric tons of global trade. Thai rice prices were quoted at $540-$550 on Monday, down from last week’s $550 to $560 per ton.


Thailand’s rice export prices could decrease due to increased supplies in the market, but the extent of the decline would depend on several factors, including the appreciating Thai currency, said Chukiat Opaswong, honorary president of the Thai Rice Exporters Association.


Rice prices have started to correct, even in Vietnam, but traders caution that the full impact of Indian supplies has yet to be seen.


World rice production hit nearly 780 million tonnes in 2022, making it the fourth-most produced cereal grain after wheat, corn, and sugarcane.Said the UN Food and Agriculture Organization.


The world’s  most populous countries, China and India, top the list of largest rice producers, each with around 200 million tonnes.In fact, these two countries together grow more rice than the rest of the world combined. India is also the world’s largest rice exporter, accounting for more than one-third of rice exports by itself.


Noticeably, the majority of the world’s rice production is in Asia. This is due to a combination of climatic, geographic, cultural, and economic factors. For example, rice requires a warm, humid climate (found throughout Asia), and is also a staple food in the Asian diet.


Brazil, ranked 11th with 11 million tonnes, is the only non-Asian country on this list. The Portuguese brought rice to the region in the 16th century, and since then, it has flourished in the warm, humid climate, becoming a diet staple. The Amazon region of the country also has two native rice species.


The U.S., which exports half of its total rice production (5 million tonnes) making it the fifth largest rice-exporter in the world.


(Source: Reuters)