FAO's Rice Price Index Drops to 8-Year Low

06-Dec-2025 01:25 PM

Rome. The Food and Agriculture Organization (FAO), a United Nations agency, declined by 1.5 percent to 96.9 in November 2025 compared to October, marking a decline of nearly 20 percent compared to November 2024 and its lowest level since April 2017.

This index includes all varieties of rice. Due to weak demand amid abundant global supply, prices of various varieties and grades of rice declined during November, leading to a decline in the price index.

According to the FAO report, prices of Indica and Aromatic rice declined particularly significantly. Indica rice prices fell by 1.3 percent and Aromatic rice prices by 3.9 percent in November compared to October. On the other hand,

Japonica rice prices rose by 2.8 percent due to import tenders issued in East African countries, and glutinous rice prices rose by 1.7 percent due to improved demand from China. Thus, different rice varieties witnessed varying trends.

As for Indica rice, its prices also fluctuated across various Asian supplier countries. In Thailand, prices of this rice improved slightly due to some government measures.

Thailand also signed government-level rice trade agreements with China and Singapore. Consequently, Pakistani rice prices also increased slightly, while Indian white rice prices continued their decline.

The market softened due to the abundant arrival of new supplies and the rapid pace of government procurement. The government already has a large stock of rice, which will be further increased by new purchases.