Half of the world’s staple diet revolves around rice. Some statistics show that for every one billion people added to the world’s population, an additional 100 million metric tonnes of rice must be produced every year. Here are some of the latest news and market trends that might influence the rice rate in the commodity market.
Rice trends within India
More than half of India consumes rice as their primary source of carbohydrates. India also has some of the best conditions in the world to produce rice.
Let us now take a look at some of the programs and plans taking place in India that might be affecting rice rates in the commodity markets:-
- In 2021, the government announced plans to launch a ‘Nutrition Fortification’ scheme to be rolled out into already existing governmental programs.
- The scheme aims to fortify rice in rations and mid-day meals to help beat malnutrition in women’s and children’s.
- Fortifying rice means adding microdoses of essential micronutrients to improve the nutritional quality of the rice.
- There has also been an increase in the use of rice in the animal industry. The supply of usual animal feed like corn, wheat, and husks has declined due to the halt in export and import due to the global supply chain break.
- Rice is also set to gain popularity in the Indian market after a record-breaking price increase for wheat (the second-largest staple food in India.).
Considering all these factors, it might be wise to keep an eye on the rice commodity prices, especially since they are promising prospects in the short run.
Global rice trends
A few key global markets influence the price of almost all commodity markets. China, America, Indonesia, and Bangladesh influence the rice rate in the commodity market. Let us take a look at some of the global trends that might influence the rice rates in the coming months.
- The pandemic has thrown off the delicate balance of the supply chain of global agricultural commodities in recent years.
- The La Nina also impacted rice production in places like Indonesia and Malaysia. This is important because Indonesia is amongst the fourth largest rice suppliers in the world.
- The Indian and Chinese markets were flush with rice supplies last year despite the bad weather and disruption in the global supply chain. This is because of the release of reserves from the respective countries’ grain stock.
- The recent attacks of Russia on Ukraine halted grain shipments from both countries. However, the USDA isn’t too worried about this prospect. They still believe the 2021/2022 rice market prices will end at historic highs.
- There is also a good chance that Thailand and India might fill in the supply gap that Ukraine and Russia have left behind.
Current Price Rate List of Rice According to Market Trends
According to an estimation, rice consumption is expected to increase by 25% in the upcoming 25 years on the global level. And for the price market of 2023-24, the price may fluctuate to up to 15% overall.
Here are the complete stats of information according to the data analysis of the year 2023, which contains the latest updated price rate of Rice according to the global market trends. The prices that we’ve mentioned are in USD per KG.
|Rate Per KG
The rice price rate of 2023 is not based on consumption but on the region, shipping costs, and cultivation costs. The costs can also vary depending on the supply & demand ratio
Importance of accurate tracking of rice rates in the commodity markets
The rice industry is very volatile, and it is hard to gauge the market sentiments from news and context alone. This is why it is essential to check the commodity markets to help figure out trends. The OAgriFarm website has a detailed page about commodity pricing that updates dynamically.
So you can rest assured that you are getting the most recent updated rice rates in your preferred markets. OAgriFarm also allows you to compare the prices of different commodities in your preferred cities. It also has a live NCDEX price chart that is helpful for traders. O’AgriFarm platform is one of the easy-to-use and simple agri platforms in India.