ARTICLE 2 #Rice Prices

India is the world’s top shipper, and its move to ease export restrictions has helped push Thai prices — an Asian benchmark — down almost 40 per cent from a 15-year high in January 2024. Still, the country’s swelling surplus shows its struggle to find enough demand to meet rising supply. Global stockpiles are expected to reach a five-year high in the coming season, which could keep prices under pressure.

As of August 1, 2025, the U.S. has officially imposed a 25% tariff on Indian imports, including rice, along with a unspecified penalty tied to India’s oil and defense purchase agreements with Russia The Indian Rice Exporters Federation (IREF) has stated that the tariff represents a temporary hurdle, not a permanent disruption. They emphasize India’s competitive advantage and strategic adaptability.

Rice millers in Punjab have declared they will not process hybrid paddy varieties such as Pusa‑44, citing extremely high grain breakage rates (45–50%) and reduced head‑rice recovery (55–57% vs. the standard 67%). This makes milling financially unviable and poses serious complications for the upcoming procurement season. Millers are demanding relaxed breakage norms and access to an IIT Kharagpur study on yield outcomes.