Global rice prices fall as India starts white rice exports

India’s decision to allow the export of non-basmati white rice on October 2, 2024, and reduce export duty on parboiled rice has led to a global drop in rice prices. The new supply, supported by an upcoming harvest and increased state inventories, helped lower costs, benefiting importers in Asia and Africa.

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On October 2, 2024, India approved the export of non-basmati white rice. That occurred a day after New Delhi reduced export duty on parboiled rice to 10%, boosted by an upcoming new harvest and increased supplies in state warehouses.

India’s 5% broken parboiled variety was priced at US$ 500-US$ 510 per metric tonne, down from US$ 530-536 last week. Indian 5% cracked white rice was priced around US$ 490.

Global rice prices dropped on October 1, 2024, when India, the world’s largest producer of the crop, cleared the way for exports to restart, increasing global availability and assisting poor Asian and African purchasers in securing more reasonable supplies, exporters said.

Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter, said, “Suppliers from Thailand, Vietnam, and Pakistan are responding to India’s move by lowering their export prices. Everyone’s trying to stay competitive to hold their spot in the market.”

Following India’s decision last year to ban the sale of white rice and put a 20% levy on parboiled rice exports, global rice prices rose to their highest level in more than 15 years.

Last year’s export restrictions established by India allowed competitive producers such as Vietnam, Thailand, Pakistan, and Myanmar to increase their market share and command higher pricing in global markets.