Rice Industry Overview and Outlook

RICE | GLOBAL INDUSTRY PRICES | DEMAND SUPPLY WORLD Average Price (USD/MT) f.o.b CY16 CY17 CY18 CY19 9MCY20 U.S Long Grain 2.4% 438 456 531 500 625 Thai Parboiled Rice 100% 410 421 431 428 480 India 25% 333 361 374 361 352 India Basmati 860 805 1,027 1,067 930 Pak Basmati 849 795 1,131 982 955 Pakistan IRRI 327 350 360 324 415 ◉ ◉ ■ Market led (Unregulated) pricing mechanism exist in most of the rice producing countries. Prices are, therefore, a derivate of demand supply behavior in the major rice trading economies. In 2016, lower consumption in India and softened demand from a few major importers, including Nigeria, kept the prices weak. The trend was reversed in 2017 wherein overall world consumption, including India, improved. The same pattern was reflected in recovered prices. From 2017, recovery was seen in the global prices, therefore benefiting Pakistani rice exporters as well. In 2019, Pakistani basmati rice prices rationalized given rupee depreciation and general market & crop conditions. Amid Covid-19 pandemic, many countries, including Thailand, suspended their rice exports in anticipation of securing domestic supply in uncertain times. The decision indirectly benefitted Pakistan and India, whose rice exports were not majorly hindered, except for the slowdown in operational and port activities. Prices in the export market, therefore, remained less vulnerable. Source: Thai Rice Index || PACRA

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