Abundant Supply and Limited Demand Put Pressure on Rice Prices

08-Dec-2025 05:47 PM

Hyderabad. Large rice stocks exist both domestically and globally, and fresh supplies continue to arrive in ample quantities. On the other hand, demand from importing countries has not been as strong as expected. As a result, rice prices remained under considerable pressure in November and continue to stay weak in December as well.

The depreciation of the Indian rupee is helping exporters keep their rice offer prices competitive. Meanwhile, the rice import ban in the Philippines has forced Vietnam to search for new markets, compelling it to maintain its export prices at lower levels. Thailand is hopeful of increasing its rice exports to China and a few other countries. Pakistan’s rice is currently available at prices even lower than India’s. Rice prices in Myanmar remain stable.

Exporters expect rice trade and prices to strengthen in the months ahead, as major rice-producing and exporting countries are likely to face significant crop losses due to natural calamities. In recent weeks, extremely heavy rains have triggered severe flooding in Vietnam, Thailand, the Philippines, Indonesia, and several other Southeast Asian rice-producing nations. Some African countries are also struggling with similar issues, and the situation is not favorable in parts of Central Asia either.

The Philippines is considered the world’s largest rice-importing country. Indonesia is making strong efforts to be self-sufficient in rice production, but if its paddy crop suffers damage, it may need to import rice again. In the Philippines, the rice import ban remains in effect until 31 December 2025. The government had indicated that the consumption limit could be extended to January 2026 if required, but this now seems less likely.

India is witnessing record rice production, and the supply and availability situation remains very comfortable.