Rice: Overview
Why nearly all rice is simply eaten
What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.Key uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Staple food in East Asia (China, Japan, South Korea): mostly japonica and indica table rice | 29.8% | about 159 Mt milled a yearbasis | Rice grows well in warm, wet monsoon and paddy landscapes, gives two crops a year in the south and stores as paddy for years. Governments in China, Japan and Korea protect domestic growers and hold large reserves, so East Asian rice barely enters world trade. USDA WASDE, 9 Oct 2026 | Wheat noodles and buns (northern China) Potatoes Maize |
| India: table rice, free grain through the PDS, and FCI rice for ethanol | 22.7% | about 121 Mt milled a yearbasis | Rice is the staple of eastern and southern India. The FCI buys paddy at the MSP and gives rice free to about 81 crore people under PMGKAY. Huge surplus stocks have also been sold to ethanol distilleries since 2024. USDA WASDE, 9 Oct 2026; Government of India (PMGKAY) | Wheat atta (north India; the PDS can swap) Millets (ragi, jowar, bajra) |
| Southeast Asian staple (Indonesia, Vietnam, Philippines, Thailand, Myanmar) | 18.2% | about 97 Mt milled a yearbasis | Thailand and Vietnam export long-grain and fragrant rice; Indonesia and the Philippines import to cover shortfalls through state buyers such as Bulog. USDA WASDE, 9 Oct 2026 | Wheat noodles and bread (growing in Indonesia) Maize and cassava (minor staples) |
| Imported long-grain, parboiled and basmati rice in Africa and the Middle East | 3.7% | about 20 Mt milled a year in the countries USDA lists (Nigeria 8.5, Egypt 4.15, selected Middle East 6.98 Mt)basis | Urban demand in West Africa and the Gulf has outgrown local supply. Parboiled rice from India and Thailand keeps well in heat and suits local dishes; Gulf buyers pay premiums for Indian and Pakistani basmati. USDA WASDE, 9 Oct 2026 | Local rice Wheat bread Cassava (gari, fufu) |
| Processing and industry: rice flour, noodles, brewing, ethanol; broken rice and bran for feed | n/a | not split out by USDA; included in country totals abovebasis | Broken grains, about the cheapest starch in Asia, go to brewing, noodles, rice flour, pet food and feed. With stocks far above buffer norms, the FCI sold 6.35 Mt of rice to ethanol distilleries between June 2025 and June 2026, about 40% below its acquisition cost. Moneylife citing Government of India (2026; not re-checked) | Maize and cassava (starch, ethanol, feed) Wheat flour (noodles) |
From field to user
- Nursery and transplanting or direct seeding Seedlings are raised in nurseries and transplanted into puddled, flooded fields; direct seeding is spreading to save labour and water.
- Crop growth under flooding India's main kharif crop grows with the monsoon from June to October; tropical Asia can grow two or three crops a year.
- Harvest, drying and sale of paddy In India farmers sell paddy at the MSP (common paddy Rs 2,369/quintal for 2025-26 and Rs 2,441 for 2026-27) to the FCI and state agencies, or to private millers.
- Milling Hulling removes husk to give brown rice; polishing removes bran to give white rice. The FCI expects 67 kg of rice per 100 kg of paddy (68 kg if parboiled).
- Grading and storage Grades are set by broken share (Thai 5% = 5% broken) and grain type. India's central pool held 39.05 Mt of rice on 1 September 2026, nearly four times the 1 October norm of 10.25 Mt (Business Today citing FCI).
- Export or public distribution World trade was about 58.5 Mt in 2025/26 (USDA), only about 11% of output; India supplied 33.6% of 2024 export value.
- Retail and food service Most rice is sold bagged in local markets; branded basmati and jasmine sell at premiums.
Price movement snapshot 2026-10-25
CBOT rough rice futures 18.0 US$/hundredweight Close 2026-10-23 · Yahoo Finance 1 week +3.9% 6 months +67.6% World production 820.2 m tonnes, 2024 Largest producer India 26.56% of worldThree things to know
- India supplied 33.6% of world rice export value in 2024, more than Thailand and Pakistan combined (UN Comtrade, HS 1006).
- Morgan counted more than eight thousand rice varieties, which is why no single benchmark price captures the market.
- China holds about 52% of the world's projected 2025/26 rice ending stocks (USDA WASDE, October 2026).
Top recent news snapshot 2026-10-25, last 30 days
- Rising rice prices spur anxiety in VisakhapatnamThe Hindu · 2026-10-14
- Watch. El Niño Impact: Why rice prices are soaring despite high stocks | Trending commodity picks | EP 117BusinessLine · 2026-09-30
- Urban demand, supply shortfalls and higher MSP push rice prices up in Tamil NaduThe New Indian Express · 2026-10-12
- Rice prices hit more than one-year high on strong rupee, tight supplyDeccan Herald · 2026-10-23
- Rice prices may rise another 10-15%; wheat seen range-bound: Industry expertsCNBC TV18 · 2026-09-29