W5 Rice Update: Vietnamese Firms Dominate Indonesian Rice Tender, Pakistan's Export Surge Expected, South Korea's Rice Exports Reach Record High
Pakistan Anticipates Surge in Rice Exports Amidst India's Trade Restrictions
Pakistan's rice exports are anticipated to achieve a record high by Jun-24, attributing to India's rice trade restriction, which led to global rice supply shortages in 2023. In Dec-23, Pakistan exported around 700 thousand mt of rice due to higher production and increasing global prices. Despite higher production, local prices are gradually rising, with 5% broken white rice priced at approximately USD 640/mt and parboiled rice at about USD 680/mt. This is an increase from last year's prices of USD 465/mt and USD 486/mt, respectively. Notably, Pakistan's non-basmati rice is exported to countries such as Indonesia, Senegal, Mali, Ivory Coast, and Kenya, whereas premium basmati rice is exported to the European Union (EU), Qatar, and Saudi Arabia.
Additionally, Pakistan's rice production is expected to make a significant recovery, with a projected yield of 9 to 9.5 million metric tons (mmt) in the 2023/24 season. This is a considerable improvement from 5.5 mmt in the previous season, which was affected by floods.
South Korea's Processed Rice Food Exports Surge, Riding the Wave of K-Food Popularity
In 2023, South Korea's exports of processed rice food hit a new record of USD 217.24 million, showing a 19.5% YoY increase. This surge is due to the popularity of Korean cuisine, also known as 'K-food,' including instant rice, frozen kimbap, and tteokbokki. The United States (US) is the largest importer among the importing countries, accounting for 52.8% of the total exports. The other significant importers are Vietnam, the United Kingdom (UK), and the EU. The rise in demand is also attributed to the global trend of convenient and healthy foods and the success of Korean pop culture. The South Korean government plans to support this industry's growth further, aiming for exports to reach USD 400 million by 2028.