Global Market Overview of Rice

Delivery

This report comes in PPT.

Key findings

Demand for rice to continue growing over the short term

Rice, a staple food in the majority of Asia, is set on a growth path, as the calorie-dense food is a cheaper substitute for currently highly inflation-impacted food staples. Furthermore, rice’s use as animal feed is also set to stimulate the commodity’s demand in 2022 - especially in light of growing price inflation of more traditional feeds in 2022.

Shifts in trade as Asian giants seek food security

India sustained its leadership position as the largest rice exporter in the world in 2021, however, increasing risks around the country’s food security are pushing the government to limit foreign trade in the commodity in 2022. Meanwhile, other major exporters, such as Thailand and Vietnam, have potential to increase their foreign trade, expanding their role in the rice export market.

Climate change and extreme weather events to increase their influence on rice farming

The increasingly adverse weather is threatening rice farming in the largest producing region, Asia Pacific. For example, in 2022, heatwaves in China, floods in Pakistan and heavy winds and heavy rain in Bangladesh all have had a significantly damaging effect on 2022-2023 harvest prospects. As extreme weather events are increasing in their severity and frequency, rice production output is heavily reliant on farmers’ ability to adapt.

Turbulent rice prices

Rice prices peaked in 2021, however various global events, such as declining production levels during the current season and export restrictions coming from India, the largest global exporter, have the potential to sustain elevated prices for the commodity over the short-term outlook.