Rice prices drop by 35% due to the reopening of exports from India

Rice prices have dropped by 35% in a year, reaching approximately 360 USD per ton, the lowest level since 2017, due to the lifting of export restrictions imposed by India, the world's largest exporter. After a period of extreme volatility, the market is facing a surplus of 541 million tons for 2024, which has led to the decrease in prices. India restricted exports in 2022 and 2023 to limit price increases, and the reopening of exports in 2024, along with record harvests, has contributed to this decline.

Prices are expected to continue to fall until the end of 2025, with possible stabilization in 2026. Rice, the most consumed staple food globally, is still minimally traded on global markets, and Asia remains the main player. The drop in prices threatens the profitability of producers in lower-producing countries, and the Philippines and Indonesia are taking measures to support their domestic producers.