Global Outlook of Rice Market

Rice is hugely important to the Asian economy, culture, and diet. Asia is the world’s predominant rice-producing and -consuming region: during 2007/08–2013/14, it accounted for 90 percent of milled rice production (figure ES.1) and 86 percent of consumption. Roughly one half of global rice production and consumption is in China and India. In Asia, rice is the primary staple food for most of the population, especially for the region’s poor, and the per capita consumption rate is the highest worldwide. In Southeast Asia, for example, per capita consumption was 167 kilograms (kg) in 2013/14, compared with just 12 kg in the United States. Asian rice consumption is rising modestly, driven mostly by population growth. Asia also has over 90 percent of global rice stocks, much of which is held by governments to meet domestic policy requirements that attempt to ensure adequate supplies and affordable prices for consumers.

fig:A comparison of competitive factor categories for long grain white rice in selected countries

African Market Outlook

Africa accounts for about 6 percent of global rice consumption, while South America accounts for another 3 percent: each supplies about 4 percent of global production. Rice consumption is growing most rapidly in West Africa, where annual per capita consumption has reached 50 kilograms, a response to rising incomes and urbanization. The United States is a surplus producer, accounting for about 1 percent of global rice production but less than 1 percent of global rice consumption.

Government Considerations

Government intervention has affected trade and price trends in the world rice market more than it has for most other agricultural products. This intervention stems from the critical role that rice plays for both consumers and producers globally. Rice is the leading staple food in much of the world, and it is an important part of the diets of billions of low-income, foodinsecure consumers. Its vital role makes its availability and price politically sensitive for governments in several regions. Many government policies aim at retaining rice in-country to keep domestic prices low, making it a relatively thinly traded commodity with a more volatile global market. But this volatility only increases the incentives for further government action, and so when a crisis strikes, policy interventions tend to multiply.