W12 Rice Update: Brazil's Rice Exports Decline 24% YoY From Jan-24 to Feb-24, Indonesian and Egyptian Rice Markets Show Stability

Vietnam's Rice Exports to Senegal Surged, Yet Remain Limited Compared to Total Imports

Despite being a primary source of rice supply for Senegal, which boasts one of the highest per capita rice consumption rates in West Africa, Vietnam's exports to Senegal remain limited. According to the Vietnam Trade Office in Algeria and Senegal, Vietnam exported 12 thousand metric tons (mt) of rice to Senegal in 2023, generating a turnover of USD 5.35 million, marking a significant increase of 215% year-on-year (YoY). However, this amount pales compared to Senegal's total rice imports of 1.3 million metric tons (mmt) in the same year. Senegal imports between 900 thousand mt and 1 mmt of rice annually, primarily low-priced 100% broken rice. Top rice suppliers include India, Thailand, China, Pakistan, Uruguay, and Vietnam.

Besides catering to its domestic market of over 18 million people, Senegal also imports rice for re-export to neighboring countries such as Mauritania, Guinea-Bissau, and Gambia. In response to rising food prices at the beginning of 2022, the Senegalese government implemented measures to maintain purchasing power, including abolishing Value-added tax (VAT) on imported rice and reducing import duties on broken and regular rice to 2.7% from the previous 12.7%. Given the limited supply and Senegal's preparations for the presidential elections in 2024, it is likely that the nation will ramp up imports of broken rice from Asia.

Brazilian Rice Exports Declined by 24% YoY From Jan-24 to Feb-24

According to the Brazilian Rice Industry Association (Abiarroz), Brazil's rice exports from Jan-24 to Feb-24 experienced a significant decline of 24% YoY. Shipments during that period amounted to 182.1 thousand mt, down from 239.4 thousand mt in 2023. This decline also affected foreign exchange revenue, which decreased from USD 74.5 million to USD 60.8 million during the same period. Abiarroz attributes the decrease in exports to the elevated rice prices in Brazil, which surpassed international prices. In Feb-24, rice exports totaled 98.5 thousand mt, generating revenue of USD 34.3 million, while in Jan-24, shipments amounted to 83.6 thousand mt, with revenue reaching USD 26.5 million. Although exports of processed rice also saw a decline from Jan-24 to Feb-24, the decrease was less pronounced. Approximately 156 thousand mt were shipped during this period, representing a 2% YoY drop compared to the same period in 2023. However, foreign exchange revenue from processed rice exports increased to USD 51.3 million from USD 47 million in the previous year.

Indonesian Rice Prices Stabilize in Mar-24

Indonesian rice prices in Mar-24 displayed signs of stability, no longer exhibiting the fluctuations observed in Feb-24. There is a decrease in the number of districts and cities experiencing an increase in rice prices in the second week of Mar-24. Comparing the price of rice in the first week of Mar-24, it was USD 1.01 per kilogram (IDR 15,956/kg), and now it is USD 1.01/kg (IDR 15,966/kg). There is only a slight difference, indicating stabilization.

Egypt Experienced a 5% Decrease in Rice Prices in Mar-24 Amid Increased Market Availability

There was a 5% decrease in rice prices in Egypt in Mar-24, with the price reaching USD 643.02 per metric ton (EGP 30,000/mt) compared to USD 707.32/mt (EGP 33,000/mt) in Jan-24. This decline is due to the high availability of rice in the market and fluctuations in the US dollar exchange rate at Egyptian banks.