Rice Market Intelligence

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Are you looking for answers on Rice category?

Are you looking for answers on Rice category?

  • What are the key trends in Rice category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Rice industry?
  • How is Rice industry performing?

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Report Coverage

  • Global Supply–Demand Analysis
  • Global Rice Trade Dynamics
  • Cost Structure Analysis – Rice
  • Regional Market Outlook-Thailand, India, Vietnam,
  • Innovations

Table of Contents

  1. Rice Market Executive Summary
  2. Global Rice Market Overview
  3. Contract Structures
  1. Rice Market Analysis
  2. Classification of Rice Varieties
  3. Regional Market Outlook (Thailand, India, and Vietnam)- Supply - Demand Analysis; Trade Dynamics; Pricing Analysis
  4. Global Market Outlook
  5. Global Supply - Demand Analysis
  6. Global Demand Analysis
  7. Global Rice Trade Dynamics
  8. Cost Structure
  1. Rice Industry Analysis
  2. Industry Outlook (US, EU, and Asia)
  3. Porter's Five Forces Analysis
  4. Innovations
  1. Indian Basmati Rice Supplier Analysis
  2. Profiling of Major Basmati Rice Suppliers in India
  3. KBRL
  4. LT Foods
  5. Lakshmi Overseas/Lakshmi Energy and Foods Ltd.
  6. REI Agro
  7. Kohinoor Foods Ltd.

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Global Rice Market Outlook

  • The global supply of rice has been rising slowly at a CAGR of 1.4 percent over a period of five years.
  • Prices have been surging in the market with improved consumption rates
  • The key factors driving the growth include consumption of rice as a staple food, growing production in regions, like Thailand,Vietnam, and India, and demand for certain rice varieties from the regions, like the Middle East, for the use in delicacies and during festive seasons

rice-global-market-size 

Contract Structure

  •  Animal feed producers procure large volume of broken rice, which could be more than 1,000 MT in six months. Ideally, a 3–6-month contract duration is preferred for this sector
  • Food producers normally procure a small amount of rice, such as 200–500 MT, on a monthly basis. For this industry as well, a 3–6-month contract can be negotiated with the suppliers
  • Thai rice prices are expected to witness an upward trend in the coming months.Thus, large buyers, who choose fixed-price contract (>3 months), can negotiate the contract length to three months to leverage on rising prices and achieve significant cost savings. Small and mid-size buyers can opt for spot buying in
  • Rice market reports show that prices are expected to be on an increasing trend from May to August 2018, recovering from its lowest point. This could be the best price-lock period for contracts
  • Indian rice prices could witness a downward trend in the future months. Thus, large buyers, who choose fixed-price contracts (>6 months) should reduce the length of their contracts to less than six months to leverage on falling prices and achieve significant cost savings.
  • This month could be the best price-lock period for contracts

Global Supply–Demand Analysis

  • Global production has risen slowly at a CAGR of 0.7 percent over the past five years, due to stable rice demand in global market, as rice is a staple food Although Bangladesh, China, and Indonesia rank highest in production, their consumption volume is equivalent. Therefore, these countries do not set the trends in the rice market as opposed to Thailand, Vietnam, and India, who are major players Est. Rice Production by Country
  • The world's rice production is estimated to decline by 0.5 percent compared to the last year, due to recovery in Asian regions, like Thailand and India, from the last year's drought
  • The production CAGR, over the past five years, has been 0.7 percent, which implies a slow, but an upward growth rate
  • In the case of major rice producers, like Bangladesh, Indonesia, and China, the consumption volume is close to or higher than the production volume. Therefore, these regions do not play a major role in the global export market
  • Countries, like India, Vietnam, and Thailand, who produce rice in excess of domestic demand, are the key regions influencing global rice trends

Global Demand Analysis 

  • China is the world's largest producer and consumer of rice. The country does not export rice, as the local demand is high
  • India and Vietnam are the two major rice exporters among the top five consumers of rice. Thailand is the world's sixth largest rice producer and consumer as well as a major exporter
  • The rice is mainly consumed as a staple food in these countries, and also for the use in delicacies, like biryani.

Est. Global Utilization of Rice (2019–20 E)

  • The total supply of rice could rise by approx. 2 percent compared to last year
  • The global consumption of rice is expected to increase by approx. 1.5 percent compared to last year
  • The global exports of rice could decline by approx. 1 percent compared to last year
  • The global-ending stocks of rice could increase by approx. 5 percent compared to last year
  • Est. Rice Consumption by Country (2019–20 E)

  • Among the top five producers of rice, India and Vietnam are the major exporters, where local consumption does not override the export demand
  • These countries, along with Thailand, normally influence the global market trends for rice
  • The local demand mainly comes from the utilization of rice as a staple food and in special dishes as a delicacy

Global Rice Trade Dynamics 

  • The export market share of Thailand is expected to decrease by 12 percent, while India's share could escalate as an increase of 11.4 percent compared to 2016/2017. The latter could regain its position as the top global exporter, after Thai aromatic rice competed with Indian basmati rice and was leading as the top exporter over the past 4 – 5 years
  • Rice trade volume has declined, owing to restriction on imports by Iran in the form of bans and high duties. The Nigerian import share dropped by 2 percent over five years, due to limiting imports in a drive toward self-sufficiency.
  • The export share of Thailand has increased only by 4–5 percent over a five-year period, while India has grown by 1–2 percent and stands as the world’s top exporter of rice
  • Thailand had been major sourcing destination, due to the potential for Thai aromatic rice to be used as a substitute for Indian basmati rice, with the former being available at more competitive prices
  • China is the largest importer of rice, despite being the top rice producer, due to high demand
  • Nigerian rice imports have dropped by 2 percent over a five-year period, as the country aims to restrict imports and become self-sufficient
  • The Saudi Arabian imports have increased by 0.4 percent in five years, as the region is a major importer of basmati rice, which is used in the preparation of delicacies during festive seasons

Cost Structure Analysis - Rice

The total production and processing cost for basmati rice in India is ~₹51,951.5 /MT. Labor and land rent are the major cost components for rice cultivation. In case of Thailand, the production and processing cost for rice is ~$508.5 /MT, with fertilizers and chemicals, constituting the major cost component for rice cultivation.

Rice Market Frequently Asked Questions

  1. What factors contribute to the growth of the rice market?
  2. According to the analysis of Beroe Inc, the global rice industry is gradually rising at a steady CAGR of 1.4 percent with decent improvement in the consumption rates. The key factors that drive the net growth include:
    -- The consumption of rice as a staple food
    -- Considerable growth in regions like India, Vietnam, and Thailand
    -- Consistent demand for certain rice varieties from regions like the Middle East since they use it in delicacies and during festive seasons

 

  1. Which countries are the leading importers/exporters in the rice market?
  2. As per Beroe’s analysis, India with 27 percent export holds #1 position in the list of exporting countries w.r.t the international rice market. Thailand, Vietnam, Pakistan, and the U.S. are next in line with export capacities of 22 percent, 14 percent, 8 percent, and 7 percent respectively. In terms of import, China leads the list with 11 percent, followed by Bangladesh (7 percent), Nigeria (5 percent), EU (4 percent), and both Saudi Arabia and Côte d'Ivoire at the end with 3 percent import capacity.

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