(Source: WTO – FTA Center, Vietnam Chamber of Commerce and Industry) 

Global Rice Market Outlook for 2025 

According to the latest forecast from the U.S. Department of Agriculture (USDA), global rice exports in 2025 are expected to reach 56.3 million metric tons, an increase of 2.3 million tons compared to previous projections. This growth is driven by strong supply from major exporters, particularly India. Global rice production for the 2024–2025 crop year is projected to hit a record 530.4 million metric tons, with significant contributions from India, Egypt, Guyana, Japan, and Venezuela.

However, the global rice market in 2025 faces intense competition due to abundant supply and falling prices, posing both opportunities and challenges for rice exporters and importers worldwide.

Key Factors Impacting the Market 

1.1 India’s Return to the Market 

  • Surging Exports: India, the world’s largest rice exporter, is projected to ship 21 million metric tons in 2025—up by 3 million tons compared to earlier forecasts—following the removal of the export ban on non-Basmati white rice and a reduction in export duties on brown and parboiled rice from 20% to 10%.
  • Price Impact: India’s rice export prices are expected to fall below USD 600/MT, intensifying price competition with other major exporters such as Vietnam, Thailand, and Pakistan.

1.2 Rising Import Demand 

  • Key Markets: Countries such as China, Nepal, the Philippines, Indonesia, and several African nations (e.g., Côte d’Ivoire, Ghana) are forecast to increase rice imports due to lower prices and abundant supply.
  • Consumer Trends: There is growing demand for high-quality rice (e.g., aromatic and Japonica rice) in premium markets such as Japan, the EU, and South Korea, offering opportunities for exporters with compliant products.
  • Regional Consumption Growth: Rapid population growth and urbanization in Asia and Africa, notably in China, the Philippines, and Nigeria, are contributing to higher rice consumption.

1.3 Falling Rice Prices and Intensified Price Competition 

  • Global rice prices are projected to decline due to oversupply, with the average price expected to stay below USD 600/MT.
  • In Q1 2025, Vietnam’s average rice export price was only USD 522/MT, representing a more than 20% drop year-on-year, reflecting pressure from India’s competitive pricing.

1.4 Supply-Demand Pressures on Pricing 

  • Weather Disruptions: Droughts in Thailand and floods in Vietnam’s Mekong Delta may disrupt supply chains and reduce output.
  • Geopolitical Tensions: Ongoing conflicts such as the Russia–Ukraine war and instability in the Middle East are expected to increase transportation costs and complicate logistics. 

1.5 Top Four Exporters in 2025 

  • India: Maintains its top position due to high production and agricultural subsidies.
  • Thailand: Focuses on premium rice varieties (e.g., Jasmine, Hom Mali) to offset reduced production from drought.
  • Vietnam: Increases aromatic and specialty rice exports (e.g., ST25, ST24) to markets such as the EU and South Korea, leveraging FTA advantages.
  • Pakistan: Competes with low-cost long grain rice, but faces challenges from floods and ongoing economic instability.

1.6 Emerging Consumer Trends 

  • Premium Rice Demand: The EU, USA, and Japan favor organic, whole grain, and nutrient-rich rice (e.g., brown rice, GABA rice).
  • Functional Rice: Rising demand for health-focused rice varieties (e.g., low-GI, high-protein rice).
  • Smart Packaging: Compact, eco-friendly packaging is preferred in supermarkets and e-commerce channels.

Opportunities and Challenges for Rice Exporters and Importers 

Opportunities 

  • Leverage FTAs: Trade agreements like EVFTA, CPTPP offer tariff advantages, helping Vietnamese rice penetrate high-standard markets.
  • Growing Demand for Premium Varieties: Fragrant, organic, and specialty Vietnamese rice holds strong potential in Japan, the EU, and South Korea.
  • Market Diversification: Emerging markets such as Nepal and African countries present opportunities to expand market share.

Challenges 

  • Technical Barriers and Import Standards:
  • EU, USA, Japan: Tighter regulations on pesticide residues and traceability.
  • China: Strict quarantine requirements and certification procedures.
  • Climate Change and Production Risks:
  • Mekong Delta (Vietnam): Faces increasing risks of saline intrusion and freshwater shortages.
  • India, Thailand: Long-term droughts pose a threat to productivity.

Logistics Competition and Rising Transportation Costs: 

  • Container rates and ocean freight charges may rise due to energy crises.
  • Temporary export bans (e.g., India in 2023) disrupt global market dynamics.
  • Low-Price Competition: India’s return with high supply and low prices puts considerable pressure on Vietnam’s market share.
  • Stringent Quality Requirements: Premium markets demand strict standards for food safety, quality control, and traceability.

Strategic Recommendations for Rice Export & Import Businesses 

Market Diversification 

  • Reduce dependence on traditional markets such as China and the Philippines.
  • Capitalize on FTAs (EVFTA, UKVFTA, RCEP) to access the EU, South Korea, and Australia with preferential tariffs.

Enhancing Quality and Value Addition 

  • Invest in post-harvest technologies (drying, preservation) to minimize loss.
  • Develop specialty rice lines (e.g., ST25, Jasmine, Organic rice) to increase export profitability.

Optimizing Costs and Supply Chain 

  • Secure reliable raw material sources with consistent quality.
  • Apply blockchain technology for traceability and compliance with import requirements.
  • Partner with efficient logistics providers to reduce shipping costs.
  • Incorporate digital tools in production and supply chain management to improve competitiveness.

Monitoring Market Dynamics 

  • Closely monitor global rice prices, especially from India and Thailand.
  • Stay updated on export-import policies across key markets to mitigate regulatory risks. 

Conclusion 

The global rice market in 2025 presents both opportunities and challenges for rice exporters and importers. To maintain a competitive edge, businesses must proactively adapt to market trends, diversify their product portfolio, and optimize supply chain operations. Leveraging FTAs and embracing modern technologies will be critical to expanding market share amid increasing global volatility.

Companies are encouraged to regularly connect with the WTO & FTA Center (VCCI) for the latest trade policy updates and participate in international rice trade fairs to foster global partnerships.

Disclaimer: This report is for reference only. For official and updated data, please consult sources such as USDA, FAO, and VFA.

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