Potential Rice Wholesale Market You Should Take Advantage Of

Since rice is the essence of life, varieties of rice kinds that come from varieties of countries have appeared with varieties of qualities. It leads to the diversity of prices in the rice market. Thus, finding a potential market for high-quality rice at an affordable price is key to success. This is where the rice wholesale market comes in. In the article, we’ll take a closer look at the wholesale rice market.

1. Overview trends of rice wholesale market worldwide

A rice wholesale market is a physical or virtual marketplace where bulk quantities of rice are traded between buyers and sellers. The market can be located in a specific geographical area or it can be an online platform where buyers and sellers from different parts of the world can connect and trade.

1.1. Recent trend in rice wholesale market

The global wholesale rice market was experiencing fluctuations in prices, but overall, the market was stable. The prices of rice were higher compared to the previous year due to various factors such as supply constraints, export restrictions, increased demand, trade disputes, and currency fluctuations.

• Supply constraints: Several major rice exporting countries, such as Thailand, Vietnam, and India, faced supply constraints due to a combination of factors such as floods, droughts, and logistical issues. These constraints led to lower production and exports, which reduced the global supply of rice, leading to higher prices in rice wholesale market. However, the arrival of new crops was expected to improve the supply of rice, which could stabilize prices. Additionally, improvements in logistics and transportation infrastructure in major exporting countries could also help ease supply constraints and stabilize prices.
• Export restrictions: Several countries, such as India, Vietnam, and Cambodia, imposed restrictions on rice exports to maintain adequate domestic supplies during the COVID-19 pandemic, affecting the rice wholesale market. These export restrictions reduced the availability of rice in the global market, leading to higher prices. However, some countries such as India lifted export restrictions on rice, which could result in decreased prices.
• Increase in demand: The COVID-19 pandemic has led to changes in consumer behavior, including increased demand for staple foods such as rice. The pandemic also disrupted supply chains, leading to higher prices due to the limited availability of rice in some regions. Fortunately, as pandemic-related restrictions eased, the wholesale rice market was expected to stabilize.
• Trade disputes: Trade disputes between major rice exporting countries, such as India and Pakistan, can lead to price volatility in the global rice market. Nevertheless, a resolution for this issue has already been launched to reduce price volatility.

It’s worth noting that while the COVID-19 pandemic has impacted global food supply chains and prices, the extent of the rice wholesale market does not vary much, indicating the rice market is still robust. Thus, it is an investment-worthy area.

1.2. Future trend of rice wholesale market

Based on the recent trend, the growing population and insufficient supply for wholesale rice, it is sure to note that the recent trend of importing rice in the rice wholesale market is on the upward trend:

• The increasing population leads to greater demand for rice. As the global population continues to increase, particularly in developing countries, the demand for rice as a staple food is expected to rise. Additionally, as incomes increase in these regions, consumers may also demand higher-quality rice or specialty rice varieties, which could further drive demand.
• Insufficient supply hardly meets the demand. The total output of the rice wholesale market supplied to the world in the future may not meet the large demand for consumption, so the price of rice is increasing, bringing more profits to the rice importer in the world. For example, in the US, the rice wholesale price for domestic selling in the US was around $1408 per metric ton while the average importing price of wholesale rice was around $556 per metric ton only. Thus, the buyer will enjoy a profit of 4-5 times the total cost.

The demand for rice has been consistently high for several decades, especially in Asia where it is a staple food. However, there have been some changes in the demand and taste for rice in recent years:

• Consumers are more conscious about healthy products. Brown rice has a higher nutritional value than white rice, as it contains more fiber, vitamins, and minerals. Consumers are becoming more health-conscious, and many are switching to brown rice for its health benefits.
• There is a growing demand for flavored and seasoned rice products in the rice wholesale market. Consumers are looking for convenient and easy-to-prepare rice products that offer a variety of flavors and cuisines. Manufacturers are responding to this demand by introducing new rice products that are seasoned with various spices, herbs, and sauces.
• The COVID-19 pandemic has led to changes in consumer behavior, including increased demand for packaged and ready-to-eat rice products. Consumers are seeking products that are convenient, easy to prepare, and have a longer shelf life, which has led to an increase in the demand for packaged rice products.

2. Rice wholesale market on top largest rice exporting countries 

As the world’s largest rice exporters, India, Thailand, and Vietnam play a crucial role in the global rice market. While each country has its unique challenges and opportunities, they all share a common goal of ensuring a stable supply of rice at reasonable prices for both domestic and international markets.

2.1. Rice wholesale market in India

As for the domestic market for rice in India, the prices of rice have been relatively stable over the past year, with occasional fluctuations depending on various factors:

• One of the main reasons for the stable prices is the bumper harvest in 2020-21, which led to an increase in the supply and availability of rice in the domestic market. Additionally, the government’s intervention to release its rice stocks into the market also helped stabilize prices and maintain an adequate supply.
• However, there have been some fluctuations in the prices of certain rice varieties due to factors such as transportation disruptions, COVID-19-related lockdowns, and seasonal demand fluctuations. For example, during the COVID-19 pandemic, there was a surge in demand for packaged rice, which led to a temporary increase in prices.

In general, the Indian rice wholesale market in the international market was showing stable to slightly higher prices due to a combination of factors.

• India is one of the world’s largest exporters of rice, accounting for about 30% of the global rice trade. In recent years, India has been exporting rice to over 150 countries, with the top importers being Bangladesh, Benin, Senegal, and Nepal. The main rice varieties exported from India are basmati and non-basmati rice, with basmati rice being the most popular variety due to its unique aroma and taste.
• One of the factors contributing to the Indian stable rice wholesale market was the good monsoon season in India, which led to increased rice production and availability in the market. Additionally, the Indian government released some of its rice stocks into the market to maintain adequate supply and stabilize prices.
• However, some factors were putting upward pressure on prices, such as higher transportation costs due to fuel price hikes and supply chain disruptions caused by the COVID-19 pandemic. Additionally, international prices of rice were also higher, which could lead to higher prices in the domestic market due to India’s reliance on rice imports to supplement its domestic supply. Another factor that affects India’s position in the world rice market is competition from other major rice-exporting countries such as Thailand and Vietnam. These countries also have competitive prices and high-quality rice varieties, which can affect India’s market share.

Other information for rice wholesale market:

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2.2. Rice wholesale market in Thailand

The domestic rice market in Thailand was also relatively stable. Rice is a staple food in Thailand, and the government has implemented policies to ensure that the domestic market has sufficient supplies of rice at affordable prices:

• The Thai government operates a number of programs to support the domestic rice market, including price stabilization measures, subsidies for farmers, and promotion of local consumption of rice. In addition, Thailand’s large and well-developed retail sector ensures that consumers have access to a wide variety of rice types and grades from different regions of the country.
• However, extreme weather conditions and natural disasters could disrupt supplies of rice, and changes in government policies or trade agreements could impact the availability or price of rice in the Thailand domestic rice wholesale market.

Thailand is top 2 largest rice exporters and has been able to maintain a strong position in the global rice market:

• Thailand exports a wide range of rice types and grades, including fragrant jasmine rice, white rice, and glutinous rice. The country’s rice exports are supported by a well-developed supply chain, efficient logistics, and a strong reputation for quality and reliability.
• The COVID-19 pandemic did cause some disruptions to the international rice market, but overall, the impact on the Thailand rice industry was limited. Thailand was able to maintain its position as a leading rice exporter, with exports in 2020 reaching over 5.7 million tons, worth around $3.07 billion.

2.3. Rice wholesale market in Vietnam

In the domestic market, the price of the Vietnamese rice wholesale market was reported to be on an upward path during this period due to the higher fertilizer and fuel prices, on rice farmers’ profitability:

• One of the main reasons for the increase in the price of rice in the domestic market could be rising production costs. The cost of inputs such as fertilizers, pesticides, labor, and fuel has increased, making it more expensive for farmers to produce rice.
• Extreme weather conditions, such as droughts and floods, can affect rice production and supply, leading to a shortage of rice and higher prices in the Vietnamese rice wholesale market. Vietnam has been affected by climate change in recent years, which could have impacted rice production and supply.
• However, government policies have been signed such as setting a minimum price for rice to protect farmers’ interests and ensure stable income. Moreover, the government provides subsidies for inputs such as fertilizers, pesticides, and seeds to reduce the cost of production for farmers.

Fortunately, the Vietnamese rice wholesale market was reportedly stable in the international market, with high-quality rice, government support and favorable trade agreements: 

• Vietnam is the top 3 largest rice exporters, and the country has significantly produced Jasmine Rice, White Rice, Fragrant Rice, and Glutinous Rice. Vietnam rice is known for its high quality, and the country has been focusing on promoting the export of high-quality rice varieties in recent years. This has helped to maintain stable demand and higher prices in the international market.
• The Vietnamese government has implemented various policies and programs to support rice production and export, including price support, input subsidies, and infrastructure investment. These policies have helped to ensure a stable supply of rice for export and maintain competitiveness in the global market.
• Vietnam has signed several trade agreements with key export markets, including the EU and Japan, which have reduced trade barriers and increased market access for Vietnamese rice. This has helped to maintain stable demand and higher prices in these markets.

3. Price on the rice wholesale market

The price of rice in the international market may be more expensive than in the domestic market due to factors such as higher quality standards, shipping and logistics costs, currency exchange rates, and differences in demand and supply.

3.1. Price on the rice wholesale market in India

	International market	Domestic market
Basmati	535-540 USD/ton	385-420 USD/ton
Red rice	435-450 USD/ton	360-380 USD/ton
Brown rice	420-440 USD/ton	345-380 USD/ton

Typically, Basmati rice is the costliest of the three Indian rice types available for wholesale, followed by red rice and brown rice. The higher price of Basmati rice is due to its premium quality and distinctive aroma and flavor, making it a popular choice for high-end cuisine. In the rice wholesale market, red rice, on the other hand, is a specialty rice with a unique nutty flavor and distinct red color, making it more expensive than brown rice.

3.2. Price on the rice wholesale market in Thailand

	International market	Domestic market
Jasmine rice	570-760 USD/ton	485-620 USD/ton
White rice	510-700 USD/ton	460-580 USD/ton
Glutinous rice	890-1080 USD/ton	845-980 USD/ton

Jasmine rice is renowned for its superior quality, owing to its fragrant aroma, soft texture, and delicate flavor. This long-grain rice variety originated in Thailand and is also referred to as Thai fragrant rice or Hom Mali rice. However, in the rice wholesale market, white rice is more economical than Jasmine Rice and Glutinous Rice due to its ease of cultivation and production, a larger market demand, and its basic rice variety, making it easier and less expensive to produce.

3.3. Price on the rice wholesale market in Vietnam

	International market	Domestic market
Jasmine rice	473-580 USD/ton	455-520 USD/ton
White rice	410-500 USD/ton	360-480 USD/ton
Glutinous rice	700-940 USD/ton	6555-990 USD/ton

Vietnamese Jasmine Rice is considered a premium rice variety in many countries, and as a result, it may have a higher price point, in the rice wholesale market, compared to White Rice and Glutinous Rice. White Rice, being a more basic rice variety, generally has a lower price compared to Jasmine Rice. In contrast, Glutinous Rice has a unique sticky texture and is commonly used in desserts or as a side dish, which may lead to a higher price point compared to other rice varieties.

3.4. Factors affected rice wholesale market price

However, the price of rice wholesale is also influenced by the quality of rice, packaging forms, supplier branding, trade volume, market competition, production cost and government policies.

Factors affecting domestic rice wholesale market:

• Government policies: Government policies such as subsidies, taxes, and regulations can impact domestic rice prices. For example, a reduction in taxes on rice imports can increase domestic supply and lower domestic prices.
• Transportation costs: The cost of transporting rice from the production areas to the markets can impact domestic prices. Higher transportation costs can result in higher prices for consumers.
• Local weather conditions: Droughts, floods, and other weather-related disasters can impact the domestic supply of rice, leading to price increases.
• Quality and quantity of domestic production: The quality and quantity of rice produced domestically can affect prices. A decrease in production due to pests, diseases, or other factors can lead to higher prices.
• Rice wholesale dealers or Rice wholesale manufacturers: if you buy from Rice wholesale dealers, it means you are dealing with a commercial supplier, and the price will be higher than if you buy directly from manufacturers. The rice wholesale dealers are the company or person who buys the rice from other manufacturers and resells it through a distributor or directly with the end consumer.

Factors affecting the international rice wholesale market:

• Global supply and demand: International rice prices are largely determined by global supply and demand. Factors such as population growth and changing consumer preferences can impact global demand, while changes in production levels in major producing countries can impact global supply.
• Trade policies: Trade policies, such as tariffs and import/export regulations, can impact international rice prices. For example, a reduction in tariffs on rice imports can increase global supply and lower prices in the rice wholesale market. 
• Currency exchange rates: Changes in currency exchange rates can impact the competitiveness of rice exports from different countries, leading to changes in global prices.
• Transportation costs: The cost of transporting rice from exporting countries to importing countries can impact international prices.
• Competition among exporting countries: Competition among major exporting countries, such as Thailand, Vietnam, and India, can impact global rice prices.

4. How to find a potential rice wholesale market for your business

Finding potential wholesale markets for rice can be a challenging task, but here are a few steps that can help.

• Choose potential types of rice: India’s Basmati rice is favored by many around the world due to its nutty aroma and sweet taste. Importers who seek high-quality, cost-effective rice may find India to be a good market. Thailand’s jasmine rice is suitable for Asian and Middle Eastern cuisines because of its fragrant aroma and slightly sticky texture, making it a sought-after product in the rice wholesale market. Importers looking for consistent quality and premium branding may find Thailand to be a good market. Vietnamese medium-grain rice has a soft texture and slightly sweet taste, making it preferred by many for various dishes. Importers seeking good quality rice at competitive prices may find Vietnam to be a good market, given its versatile use in a wide range of culinary applications.
• Research the market: Start by researching the current market demand for rice in your area. Look for statistics on how much rice is consumed, what types of rice are popular, and who the major players in the industry are.
• Identify potential customers: Make a list of potential customers who might be interested in buying rice wholesale. This could include restaurants, grocery stores, schools, hospitals, and other businesses that use rice as an ingredient.
• Network with industry professionals: Attend industry events and network with professionals in the rice industry. This can help you learn more about the rice wholesale market and identify potential customers.
• Analyze your competition: Analyze your competition to determine what they are doing well and where there might be opportunities for you to differentiate yourself. Look for gaps in the market that you can fill.
• Build relationships: Once you have identified potential customers, focus on building relationships with them. This could include offering samples of your rice, providing excellent customer service, and being responsive to their needs.
• Be flexible: Finally, be willing to adapt to the market as it changes. Keep up with trends in the industry and be willing to adjust your business strategy accordingly.