Global Rice Market Overview
Understanding the Global Rice Trade
The global rice trade allows countries to meet their domestic demand, bridge gaps, and benefit from relative advantages in production.
The trade volume is projected to continue upward in 2023, with numerous countries contributing to rice exports. This article explores the projected rice trade statistics for 2023 and highlights the biggest rice-exporter countries for the global rice trade. Additionally, it delves into the reasons for India’s decision to stop exporting rice and its impact on global markets.
This article explores the projected rice trade statistics for 2023 and highlights the biggest rice-exporter countries.
Rice Production and Trade
Top Rice-Producing Countries in the World
China is the world’s largest producer of rice, with a periodic crop of around 148.9 million metric tons in 2023.
India, Thailand, Vietnam, and the United States are among the top rice-producing countries in the world.
The Sub-Saharan African region imports the majority of rice, while China and India continue to be the world’s largest producers and directors of rice.
Rice Imports in the United States
The United States is expected to import a significant amount of rice in 2023/24.
The impact of India’s export restrictions on global rice markets has led to the subsequent increase in rice imports to the United States. The country’s rice imports are driven by demand from various industries, including food processing and animal feed.
Rice Trade Regulations
HS Code for Rice: Understanding the Harmonized System
- The HS code for rice is 1006 globally.
- Rice, being an extensively traded commodity, has a specific HS code to classify its various types and forms.
India’s Export Restrictions on Rice
India has imposed restrictions on rice exports, including a 20% duty on white rice and a ban on broken rice exports. This has led to a decline in exports of different types of rice, such as broken rice, non-basmati white rice, and parboiled rice. Due to the reduced availability of rice from India, countries are now seeking alternative sources.
The government has also imposed restrictions on parboiled rice exports.
The prices of rice have increased significantly, with a forecast of $529 per metric ton FOB.
Driving Demand for Rice
Types of Rice and their Demand in the Global Market
- There are over 40,000 varieties of Oryza sativa, with two major sub-species: indica and japonica.
- Indica rice varieties are generally classified as long-grained rice, while japonica rice varieties can be medium or short-grained.
- India is the biggest exporter of rice, accounting for 40% of global trade by volume.
Indonesia’s Surge in Rice Imports
Indonesia has become a top rice importer, with imports increasing from 300,000 to 400,000 metric tons annually to 3.6 million metric tons.
The country’s rice production has been affected by El Niño, leading to a decline in production and an increase in imports. Additionally, India’s export restrictions have significantly impacted global rice markets, contributing to the surge in rice imports to Indonesia.
The Future of Rice Trade
Trends and Opportunities in the Global Rice Market
- The global rice market is expected to continue growing, driven by increasing demand from Asia and Africa.
- The Philippines is the leading country for rice imports worldwide, representing 8% of total imports globally.
- Indonesia’s rice imports are expected to continue, with a forecast of 3.8 million metric tons in 2024.