Global Rice Prices Set To Soften As India Eases Export Restrictions

As the world gears up for a likely moderation in rice prices, industry experts are keeping a watchful eye on the developments from India. With its looming potential to lift export restrictions, the global rice market could experience a further softening, bringing relief to importing nations, including South Africa.

Wandile Sihlobo, chief economist at the Agricultural Business Chamber Agbiz, yesterday highlighted that recent weeks have seen a notable decline in global rice prices due to expectations of ample supplies.

Notably, India began easing its stringent export restrictions at the end of September 2024, a move anticipated to enhance crop yields backed by favourable monsoon rains. Although a minimum export price of 490 per ton has been set, the shift signals a new chapter in the global rice supply dynamics.

Currently, rice prices on the international market are trading around 550 per ton, a stark decrease from the 650 per ton observed at the close of 2022, providing a flicker of hope for rice-dependent nations.

The 2023-24 season has seen a robust harvest from other leading rice exporters, such as Vietnam, Thailand, and the US, which has further alleviated fears of shortages that previously gripped the market.