Cold Chain Logistics Gain Importance for Rice Products
The rapid shift toward next-day prepared food consumption in Asia is making cold chain logistics increasingly critical for the rice sector. Previously less of a priority for staple rice, the cold chain is now essential for premium and ready-to-eat rice segments to ensure freshness and quality, according to a Citigroup report on Asian trade corridors.
- 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, leading to a significant drop in global rice prices. These policy shifts aim to increase agricultural shipments and have prompted competing exporters like Thailand and Vietnam to adjust their prices to remain competitive. - Vietnam is projected to become the world's second-largest rice exporter, with an estimated 7.9 million tons to be exported in the 2024-2025 period. The country's rice exports reached a record 9.04 million tons in 2024, valued at $5.7 billion. However, for 2025, a decrease in both volume and price is anticipated due to weaker demand and increased competition. - The demand for organic and specialty rice is on the rise in Europe, driven by health-conscious consumers and a preference for sustainable products. The European organic rice market was valued at $2.25 billion in 2025 and is expected to grow, presenting an opportunity for premium and certified rice. Italy is the largest market for rice in Europe, accounting for 27.6% of the market share in 2025. - Sustainability certifications are becoming increasingly important for accessing high-margin markets. Certifications such as the Sustainable Rice Platform (SRP), Global G.A.P., and organic certifications provide supply chain assurance and are often preferred by buyers in the EU and other developed markets. - The Thai baht to Euro exchange rate has seen fluctuations, with a recent trend of the baht strengthening against the euro from a low in October 2025. Forecasts for early 2026 suggest a softer THB/EUR rate. As of February 23, 2026, the THB to SGD exchange rate is approximately 0.0408. - The European Union has stringent traceability requirements for all food imports, mandated by the General Food Law Regulation (EC) No. 178/2002. Exporters must have systems to identify the origin and destination of their products to facilitate rapid recalls if a safety issue is identified. For Basmati rice, certificates of authenticity are required. - The Regional Comprehensive Economic Partnership (RCEP) is expected to provide long-term benefits for Thai trade, with RCEP members accounting for over half of Thailand's external trade. While the agreement aims to eliminate tariffs on over 90% of goods, the agricultural sector, including rice, remains highly protected in some member countries. - To appeal to premium buyers, there is a growing trend of using digital technology like blockchain for traceability to enhance food security and create "low-carbon rice" brands. This is exemplified by a recent agreement between Singapore and Vietnam to promote the trade of sustainable, low-carbon rice.
