Rising Shipping Costs Affect Global Rice Trade

03-Apr-2026 05:43 PM

Bangkok. The Iran–US conflict has not only made sea routes in West Asia, the Middle East, and the Gulf region unsafe, but the rise in petroleum prices has also significantly increased shipping freight charges. As a result, global trade in rice, along with other agricultural commodities, is being affected. Demand for Indian rice in African countries has weakened. Meanwhile, European nations and some Asian countries are purchasing limited quantities of rice from Thailand, while rice prices in Vietnam have increased due to several factors.

In Vietnam, the export offer price for 5 percent broken rice has jumped to $375 per tonne, which is almost at par with Thai rice. Rice supply and availability there are gradually declining. The paddy harvest is nearly complete, and milling costs have increased. Due to the ongoing crisis in the Middle East, crude oil prices have risen, forcing millers to increase rice prices.

In Thailand, the export offer price for 5 percent broken rice has reached $370–375 per tonne. The Thai currency (Baht) also remains strong. Although there is some export demand for Thai rice, exporters are hesitant to make shipments due to high freight costs and are waiting for the situation to become clearer. Rice supplies in Thailand remain adequate.