Global rice prices have declined in recent weeks, driven by weak demand and abundant supply as new harvests enter the market. The International Grains Council (IGC), in its Grain Market Report, noted a 3% drop in international rice prices, citing "ample spot availability and generally weak buying interest." Thai 5% broken rice fell by $10 to $403 per ton—the lowest price in over two years. Meanwhile, export prices in India and Pakistan softened amid thin trade, while Vietnam’s prices held steady thanks to ongoing sales to regular buyers.
South America saw the sharpest declines. The IGC reported Uruguayan 5% broken rice prices dropped by $60 to $598 per ton due to increased availability from the 2024–25 harvest.
The USDA’s Economic Research Service (ERS) echoed these trends in its February Rice Outlook, reporting a 10–11% price drop for Thai milled rice and a 6% decline in Vietnam. Other Asian exporters and South American suppliers also posted notable decreases, with Argentina experiencing the steepest fall.
In the U.S., prices for both long-grain and medium/short-grain rice declined, though long-grain prices remained above South American levels.
The UN Food and Agriculture Organization (FAO) said February rice prices fell 6.8% month-on-month, down nearly 25% compared to February 2024—the lowest level since April 2022. Export prices dropped across all major categories except glutinous rice, which saw modest gains due to local demand in Thailand and Chinese purchases.
Indica rice prices fell 7.7% from January, hitting a two-and-a-half-year low. Aromatic and Japonica varieties also declined due to subdued trading activity. The FAO pointed to limited fresh demand and ongoing harvests in Vietnam, India, and Thailand as key supply-side pressures.
Additionally, the weakening of the Indian rupee and trade uncertainties in the Americas contributed to the global price slump. In South America, efforts to clear stock for the 2025–26 harvest also added downward pressure, though Brazil’s currency strength helped temper the decline.
Source: Rural Voice