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📦 Rice

Rice

HS Code:

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Overview

Rice, classified under HS Code 1006, encompasses various types including husked, milled, broken, and other forms of rice used primarily for human consumption. It is a staple food for over half of the world's population, particularly in Asia, Africa, and Latin America. The global trade of rice is influenced by factors such as climatic conditions, agricultural policies, and trade agreements. Major varieties traded include long-grain, medium-grain, and aromatic rice like Basmati and Jasmine.

Total Trade Volume

Approximately 50 million metric tons

Data from 2022

Source

United Nations Comtrade Database and FAO Statistics

Tariff Analysis

Average Rate

20%

Highest Rate

Up to 75% in certain markets like Japan and South Korea to protect domestic farmers

Lowest Rate

0% under free trade agreements (e.g., ASEAN countries)

Common Restrictions

  • Import quotas to protect local agriculture
  • High tariffs in non-producing countries
  • Phytosanitary requirements and quality standards
  • Subsidies for domestic producers creating trade barriers

Market Trends

Rising demand for premium rice varieties

Increased exports of Basmati and Jasmine rice, benefiting countries like India and Thailand with higher revenue per ton

2021-2022

Climate change affecting production

Erratic weather patterns and water scarcity have reduced yields in key regions, leading to price volatility and supply concerns

2020-2022

Shift towards sustainable farming

Growing consumer preference for organically grown rice has prompted exporters to adopt sustainable practices, influencing trade certifications

2019-2022

Recent Developments

India's Rice Export Ban Relaxation

India partially lifted its ban on non-Basmati white rice exports to stabilize global supply after domestic prices stabilized.

September 2023

Expected to lower global rice prices and increase supply to importing countries in Africa and the Middle East.

Thailand-Vietnam Rice Trade Agreement

Thailand and Vietnam signed a bilateral agreement to stabilize rice prices and ensure supply chain resilience in the ASEAN region.

March 2023

Strengthens regional trade ties and reduces price volatility for rice in Southeast Asia.

El Niño Impact on Rice Production

The El Niño weather phenomenon has led to reduced rainfall in key rice-producing areas, affecting yields in countries like the Philippines and Indonesia.

June 2023

Increased import dependency in affected regions, driving up demand for rice from major exporters.