Rice Industry Overview and Outlook

RICE | GLOBAL INDUSTRY Trade • Almost 9% of the Global Rice demand is met through import export. 50 • India is the Largest Exporter of Rice followed by Thailand, Vietnam and Pakistan. 48 20% Global Rice trade plunged by ~9% in CY19 due to lower exports from India and Thailand - the two largest exporters. Indian Exports lost their share with Iran and EU, which contribute the highest to Indian rice export. Drop was majorly owed to strict pesticide residual laws applicable in EU, and international embargos on Iran. Similarly, overall production and trade levels were low in 2016 owing to low outputs from Thailand and India, and less import demand from Nigeria. The trend was reversed in 2017 with higher demand stemming from China and sound outputs from India and Thailand. Lately, Thailand Rice Export is witnessing a YoY decline owing to shortages of water and stronger baht. 46 44 42 40 40 38 PACRA World Rice Trade 25% 20% 15% 10% 5% 0% 1% 1% 6% -9% -5% -10% 36 -15% CY16 CY17 CY18 CY19 CY20* Global Trade | mln MTs % Change (RHS) Source: USDA 80

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