Rice is the world’s second most important cereal crop following only corn. Nearly 510 million metric tons of milled rice were produced in the last harvesting year worldwide. Traditionally, countries in Asia have the largest share in world rice production. According to the most recent official data, with a production volume of over 211 million metric tons in 2020, China was the world’s leading paddy rice producer, followed by India and Bangladesh.
Global Trade
The major rice exporting nations include India, Vietnam, and Thailand. India had the highest export volume of rice worldwide, at 18.75 million metric tons as of 2021/2022. Vietnam was the second largest rice exporter, with about 6.5 million metric tons of rice worldwide in that year. The largest rice importers were the Philippines and China. The retail price of white rice has increased in recent years. The average price per pound of long grain white rice 82 cents in the U.S. in 2021, almost double the price in 2004.
Total global consumption of milled rice amounted to approximately 502.4 million metric tons in 2020/2021. China consumed almost 155 million metric tons of milled rice per in 2021/22 and was by far the world’s leading rice consumer in that year. Following China, India is ranked second with 103.5 million metric tons of rice consumption in the same period.
Market Overview
The global rice trade is projected to register a CAGR of 4.5% during the forecast period (2022-2027).
The COVID-19 pandemic resulted in imposing lockdown in several countries across the globe. Some governments responded to the food security alarms and limited the exports to protect domestic supplies. The trade restrictions imposed led to an increase in prices, which in turn led the poor households into hunger. The global pandemic had a significant impact on ASEAN countries, where rice is the key staple food. As the restrictions have been lifted, and with a trade back to normal, the market is anticipated to grow during the forecast period.
The Middle East & Africa account for nearly half of the total rice trade. Within rice varieties, Japonica accounts for the highest market share of the global rice trade, followed by Basmati rice. India accounted for as much as 45 percent of global rice exports in 2021 as expanded port-handling capacity allowed the world’s second-largest rice grower after China to ship record volumes to buyers across Africa and Asia. According to the United States Department of Agriculture (USDA), although the United States produces less than 2 percent of the world’s rice, it is a major exporter, currently accounting for around 6 percent of the annual volume of global rice trade. The United States is regarded as a consistent, reliable, and timely supplier of high-quality rice in both the long- and combined medium- and short-grain global markets. Exports are important to the U.S. rice industry, as the global market accounts for around half of its annual sales volume. Global trade in glutinous rice has been increasing over the past 3 years. Rice import scenario is quite fragmented, with the top five importers accounting for approximately 30% of the global imports.
