Asia-Pacific Rice Market Remains Competitive
What happened
The Asia-Pacific rice market features a robust and diversified supply, with numerous varieties readily available for bulk purchase through digital trading platforms. An analysis of platforms like Tradologie shows a large ecosystem of verified suppliers, indicating intense price competition among mills across the region. Direct-from-mill procurement and flexible packaging options are becoming standard market practice.
Why it matters
- India, the world's largest rice exporter, lifted its ban on non-basmati white rice exports in September 2024 and subsequently removed the minimum export price, a move that increased global supply and pressured prices downward for competing exporters like Thailand and Vietnam. - Vietnam is strategically shifting its rice export focus towards higher-value products such as fragrant, organic, and Japonica rice, aiming to reduce total export volume to around 4 million tonnes by 2030 while increasing overall turnover to approximately $2.62 billion. This strategy targets premium markets in the EU, Japan, and South Korea. - Forecasts for the Thai Baht to Euro (THB/EUR) exchange rate suggest a softer trend, with projections for late 2026 hovering around €0.0253 to €0.0254. - Demand for premium and specialized rice is growing in the Asia-Pacific region, with the basmati rice market alone valued at over USD 10 billion in 2025 and projected to grow. This trend is driven by rising disposable incomes and a shift toward higher-quality food products. - Exporters targeting the European Union must now comply with the new EU Organic Regulation (EU 2018/848), effective from January 2025, which requires all imported organic products to meet the same strict standards as those produced within the EU, ending the previous system of "equivalence." - To meet buyer demand for sustainability, certifications such as the Sustainable Rice Platform (SRP) are becoming crucial. The SRP standard provides a framework for sustainable best practices, and products carrying the SRP-Verified label are traceable and audited for compliance. - A recent US-Japan trade agreement threatens to reduce Thailand's annual tariff-free rice export quota to Japan from 300,000 tonnes to less than 100,000 tonnes as Japan increases its rice imports from the US. - In a move to enhance food security, Singapore and Vietnam signed a memorandum of cooperation in October 2025 ensuring the unimpeded export of Vietnamese rice to Singapore, marking Singapore's first such agreement with a trading partner.
Key numbers
- Forecasts for the Thai Baht to Euro (THB/EUR) exchange rate suggest a softer trend, with projections for late 2026 hovering around €0.0253 to €0.0254.
- Demand for premium and specialized rice is growing in the Asia-Pacific region, with the basmati rice market alone valued at over USD 10 billion in 2025 and projected to grow.
- A recent US-Japan trade agreement threatens to reduce Thailand's annual tariff-free rice export quota to Japan from 300,000 tonnes to less than 100,000 tonnes as Japan increases its rice imports from the US.
- In a move to enhance food security, Singapore and Vietnam signed a memorandum of cooperation in October 2025 ensuring the unimpeded export of Vietnamese rice to Singapore, marking Singapore's first such agreement with a trading partner.
What happens next
- This strategy targets premium markets in the EU, Japan, and South Korea.
Quick answers
What happened in Asia-Pacific Rice Market Remains Competitive?
The Asia-Pacific rice market features a robust and diversified supply, with numerous varieties readily available for bulk purchase through digital trading platforms. An analysis of platforms like Tradologie shows a large ecosystem of verified suppliers, indicating intense price competition among mills across the region. Direct-from-mill procurement and flexible packaging options are becoming standard market practice.
Why does Asia-Pacific Rice Market Remains Competitive matter?
India, the world's largest rice exporter, lifted its ban on non-basmati white rice exports in September 2024 and subsequently removed the minimum export price, a move that increased global supply and pressured prices downward for competing exporters like Thailand and Vietnam. Vietnam is strategically shifting its rice export focus towards higher-value products such as fragrant, organic, and Japonica rice, aiming to reduce total export volume to around 4 million tonnes by 2030 while increasing overall turnover to approximately $2.62 billion. This strategy targets premium markets in the EU, Japan, and South Korea. Forecasts for the Thai Baht to Euro (THB/EUR) exchange rate suggest a softer trend, with projections for late 2026 hovering around €0.0253 to €0.0254. Demand for premium and specialized rice is growing in the Asia-Pacific region, with the basmati rice market alone valued at over USD 10 billion in 2025 and projected to grow. This trend is driven by rising disposable incomes and a shift toward higher-quality food products. Exporters targeting the European Union must now comply with the new EU Organic Regulation (EU 2018/848), effective from January 2025, which requires all imported organic products to meet the same strict standards as those produced within the EU, ending the previous system of "equivalence." To meet buyer demand for sustainability, certifications such as the Sustainable Rice Platform (SRP) are becoming crucial. The SRP standard provides a framework for sustainable best practices, and products carrying the SRP-Verified label are traceable and audited for compliance. A recent US-Japan trade agreement threatens to reduce Thailand's annual tariff-free rice export quota to Japan from 300,000 tonnes to less than 100,000 tonnes as Japan increases its rice imports from the US. In a move to enhance food security, Singapore and Vietnam signed a memorandum of cooperation in October 2025 ensuring the unimpeded export of Vietnamese rice to Singapore, marking Singapore's first such agreement with a trading partner.
