Premium Vietnamese Rice Gains Popularity
Farmers near Ho Chi Minh City are reportedly prospering by cultivating premium rice varieties like ST25. The success of the high-quality, branded rice points to growing consumer demand and highlights the value of investing in superior grain varieties to capture higher margins.
- The ST25 rice variety, developed over two decades by agricultural engineer Hồ Quang Cua, has won the World's Best Rice award multiple times, including in 2019, 2023, and sharing the top honor in 2025. The brand "Ong Cua Rice," named after its creator, has been registered for exclusive protection in the UK, EU, China, and Hong Kong, with registrations pending in the US. - Vietnam's rice industry is strategically shifting from volume to value, focusing on high-quality and fragrant varieties which now account for a significant portion of exports to premium markets like the EU, US, and Japan. In 2023, this strategy led to a record export value of $4.6 billion from over 8.1 million tons, with the average price increasing significantly. - India's July 2023 export ban on non-basmati white rice caused the benchmark Thai white rice price to jump by 22% and severely disrupted global supplies. With India now lifting these restrictions, global supply is expected to increase, intensifying competition and putting downward pressure on prices, impacting markets that had previously sought alternative suppliers. - The European Union is introducing a new "safeguard mechanism" effective January 1, 2027, which will impose higher tariffs on rice imports from Asia, including basmati and non-basmati varieties, if volumes exceed historical averages. This policy is designed to protect EU rice growers and encourage the import of raw paddy for milling within Europe, shifting where the value-add occurs. - Vietnam's rice exports reached approximately 7.8 million tonnes worth $4.86 billion in the first ten months of 2024, an increase of 23.4% in value year-on-year. The Philippines and Indonesia remain primary volume markets, with a government initiative underway to cultivate one million hectares of high-quality, low-emission rice to further bolster its premium, sustainable brand image. - Currency fluctuations impact export profitability, with the Thai baht to euro exchange rate seeing a high of 0.0275 in January 2026 and a low of 0.0261 in October 2025. Monitoring this volatility is crucial for pricing strategies in the European market. - The broader Asia-Pacific rice market, which accounts for over 80% of global rice consumption, is projected to grow to over $476 billion by 2031. Key trends driving this growth include rising demand for premium and specialty rice and the development of climate-resilient varieties.
