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.

India’s rice procurement in the 2024-25 season (October-September) has reached 545.22 lakh tonnes (lt) until August 31, up from 525.22 lt a year ago. Due to higher procurement, the government is now planning a roadmap to dispose of as much surplus grain as possible. The Food Corporation of India (FCI) has already allowed traders to buy a minimum of 1 tonne of rice directly from a depot at the reserve price.

Both countries, the world’s top producers of basmati, seek exclusive rights to use the label, claiming geographic and cultural ties to its origin. India, having waited seven years for EU approval of its geographic indication (GI) application, is pressuring the EU to recognize its claim, while Pakistan’s rival application includes regions in Pakistan‑administered Kashmir—territory claimed by India—making the issue highly sensitive.