The Price of US medium grain and Thai rice has reached its lowest level in eight years, falling around 50% from the records that were reached between 2023 and 2024. The reductions are driven by the record Indian Supply.
India’s Basmati rice prices have not been affected on a global level
When it comes to India, the country is witnessing a record production. Moreover, the exports were boosted by the removal of restrictions by the government. that came in the 2022 and 2023 crop year. However, India’s Basmati rice prices have not been affected on a global level, as the recent floods in India and Pakistan may have compromised part of the harvest. Not only this, it has also been influenced by the shift in US demand for Pakistani products regarding the US tariffs of 50% by the Trump-led administration on Indian exports.
Rice prices remain high at the European and Italian levels
However, rice prices remain high at the European and Italian levels, while waiting for the new harvest, particularly for indica varieties. Since the local supply has not been able to recover from the sharp fall, the broader economic situation is helping keep rice prices up. Things like transportation delays and high production costs are also playing a role in pushing prices higher. As a result, prices in the EU remain much higher than those on the international market.
What did the Arete say?
Areté, an European market research and consulting firm that specialises in agriculture, food, and related policy analysis, presented this analysis of the current situation and its expectations for the upcoming campaign at the European Rice Convention, which was an event organised by the Federation of European Rice Millers, held in Marbella from September 10 to 12.