W13 Rice Update: Rice Prices Fluctuated in Asian Markets in W13, Malaysia Requests Additional 500 Thousand MT of Rice from India

Rice prices fluctuated in Asian Markets During W13

Rice prices fluctuated across key Asian markets during W13. In India, the 5% broken parboiled rice price reached USD 550 to 558 per metric ton (mt), up from W12. The increase was due to a shift in export duty calculation methods, with the government considering total transaction value, leading to higher export prices. Additionally, Indian exporters faced demands from the customs department for duty differentials on past exports, potentially impacting future shipments. Meanwhile, Thailand's 5% broken rice prices dropped to USD 585 to 590/mt due to a weakening baht (BHT) and reduced demand, although Indonesian buyers provided some support. Vietnamese rice prices remained stable at USD 590 to 595/mt, with exporters slowing purchases amidst forecasts of reduced imports by the Philippines.

Malaysia Seeks Additional 500 Thousand MT of White Rice from India

The Malaysian Agriculture and Food Security Minister requested an additional 500 thousand mt of white rice from India. Previously, India allocated exports of 170 thousand mt of white rice to Malaysia, a gesture endorsed by the Indian government to signify the bond between the two countries.. Malaysia had also previously submitted an official request to India for a special export allocation of 100 thousand mt of onions through a government-to-government (G2G) arrangement.

South Korea Anticipates Record-Low Rice Cultivation Area in 2024

South Korea's rice cultivation area during 2024 is expected to decrease to an all-time low of below 700 thousand hectares (ha), marking a 2.9% year-on-year (YoY) decline. This reduction follows government measures aimed at managing rice production, including expanding the strategic crop direct payment system and increasing unit prices for monoculture of certain crops. These measures are anticipated to influence farmers' decisions regarding rice cultivation, contributing to the overall decrease in cultivation area.

Peru's Paddy Rice Production Increased 2% YoY in Jan-24

Peru's national paddy rice production saw a 2% YoY increase in Jan-24, reaching 229,103 mt. This is due to favorable thermal conditions, which facilitated the ripening stage of the cereal primarily for the domestic market. Significant increases in paddy rice production were observed in regions such as Tumbes (109.4%), Lambayeque (62.2%), and San Martín (7.7%), collectively contributing 52.0% of the total production. Additionally, positive performances were noted in regions like Huánuco (64.1%) and Amazonas (1.1%).

Rice Harvest Progressed Slow in Rio Grande do Sul, Brazil

During W13, only 22.5% or 202,188 ha were harvested from 900,203 ha under irrigated rice cultivation in Rio Grande do Sul, Brazil. This progress is slower than the 50% recorded in the same period in 2023. Presently, 0.9% is in the vegetative stage, 24% in the reproductive stage, and 51.5% in the maturation stage. Favorable temperatures in Feb-24 suggested a potential for good harvest results for crops in the reproductive stage during this period. However, heavy rain events in W13 have temporarily halted the harvest, particularly affecting crops in the reproductive phase.

Uruguay Expects Strong Rice Harvest in 2024 Amid Favorable Market Conditions

Uruguay's 2024 rice harvest season is underway, with expectations to yield over 1 million metric ton (mmt) of rice, driven by favorable international prices following India's absence from the market. The country's 150 thousand ha of rice paddies are projected to generate around USD 700 million in exports in 2024, exceeding the USD 550 to 600 million from the 2023 harvest. While 2023 saw a record harvest of 1.5 mmt due to optimal climate conditions, 2024's yield is estimated at 8.8 mt/ha, down from 9.5 mt/ha. Despite this, the yield remains strong by regional and global standards. The rice industry and farmers in Uruguay contribute significantly to the economy, supporting approximately 8 thousand direct jobs and an estimated 250 thousand indirect jobs.