The world’s demand for rice has been increasing at a significant rate. As a result, wholesale rice has become a developed business field with long-term advantages. Hence, there are many interesting facts both buyers and suppliers should know about the wholesale rice market.
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A glance at rice and its types
Over 3 billion people consume rice as the main source of energy, making it the most common staple food in the world. It is believed that rice is originally from Asia about 8200 years ago. Asia is also the largest consuming area, accounting for 90% of the total rice consumption. The following regions are South America and Sub-Saharan Africa.
A glance at rice and its types
Rice is classified into many different types due to differences in appearance and characteristics.
Based on the length, there are 3 types
| Long grain rice | Medium grain rice | Short grain rice | |
| Length | > 6 mm | 5.2 mm – 6.0 mm | < 5.2 mm |
| Texture | fluffy and separate after cooking | moist and tender after cooking | sticky after cooking |
Based on the length, there are 3 types
Read more: The best brands of long grain rice
Based on color, there are 2 main types
| White rice | Brown rice | |
| Way of process | The hull and the bran are removed | Only the hull is removed, the bran layers remain |
| Flavor | milder | nutty |
| Texture | soft | chewy |
| Shelf life | 25-30 years | 6 months |
Based on color, there are 2 main types
An overview of rice’s wholesale price
The wholesale price of rice is dependent on specific factors related to the environment, rice production, stock level, and customer demand. Therefore, it keeps changing from time to time.
Wholesale rice price’s characteristics
The wholesale price range of rice has fluctuated in different periods of time and in different regions. In the early 1960s, a falling trend was recorded in rice’s wholesale price. However, during the global financial crisis in 2008, the price of rice for wholesale increased three times as much as the average price, before falling back to normal.
Currently, wholesale rice costs U.S $300-500 per MT in major countries producing rice. In the African market, the price range varies from $500 to $700 per metric ton, while it costs $600 per metric ton of wholesale rice in Japan and Korea.
Characteristics of wholesale rice price
Due to the fluctuation in the wholesale rice price, many international price quotations have been established. The Food and Agriculture Organization of the United Nations (FAO) has designated India and Thailand as the countries with the most important interventions in the global rice price formation process. The Thai 5 % broken export price is commonly used to represent the market.
Factors influencing rice’s wholesale price
Variations in the wholesale price of rice can be explained by some specific reasons such as natural elements, supply and demand factors.
Factors influencing rice’s wholesale price
- Natural elements
Natural factors including floods, drought, and other natural disasters, strongly affect the range of rice’s wholesale price. Rice cultivation partially depends on the soil, temperature, and climatic conditions. A good climate will lead to large rice production; therefore, the wholesale price will be more reasonable than in the case of a bad climate. For example, in Bangladesh, wholesale rice price changes frequently by season. In May, June, July, and August, rice can be sold at a high price because of floods.
- Decrease in the growth rate of rice production
Many countries have experienced a falling trend in the growth rate of rice for 15 years. For example, the yield growth rate of South Asia in 1970-1990 was 2.14%/year, and then, it declined to 1.4%/year during 1990-2005. Moreover, as the largest rice basket in the world, the falling rice production of Asia resulted in the contraction of the global rice growth rate, less than 2% per annum. This fact has significantly affected the wholesale price of rice.
- Drop in the stock level
In recent years, rice stocks have reached their lowest point since the 1980s, particularly, during 2001-2004. China and India are responsible for this drop in stock level because of stock depletion in these two countries. As a result, the price of rice for wholesale rises substantially.
- Demand growth
Population growth results in the increasing total demand for rice. For example, in Africa, due to the growing need of rice, the imports of this staple food there account for one-third of world trade. African rice imports are mainly from Asia.
Read more: An update of jasmine rice wholesale price
Major rice exporting countries
Being the global staple food, a large quantity of rice is exported per year primarily by 5 major countries including India, Thailand, Vietnam, Pakistan, and the United States. Therefore, people who want to buy wholesale rice usually cooperate with suppliers from those countries
| Country | Export volume | Value (USD) |
| India | 15.5 million tonnes | $ 8 billion |
| Thailand | 7.5 million tonnes | $3.7 billion |
| Vietnam | 6.6 million tonnes | $1.8 billion |
| Pakistan | 4 million tonnes | $2.1 billion |
| United States | 3 million tonnes | $1.9 billion |
Top 5 countries with the largest rice export volume in 2020
It is easy to understand that 4 out of 5 major rice exporters are from Asia when this region is considered the largest rice-harvested area. Particularly, India spends nearly 44 million ha on rice cultivation, followed by Thailand and Vietnam, with 9 million ha and 7.6 million ha respectively.
Major rice exporting countries
Another reason is the environmental conditions. Although rice is produced in many parts of the world, only a few areas have enough environmental requirements for rice growth. India, Thailand, and Vietnam are the countries that have suitable climates, high daytime temperatures, a plentiful water supply, and good soil conditions. Hence, they become dominant rice producers and exporters.
Popular rice types for wholesale
Although many types of rice are available, when mentioning wholesale rice, buyers pay much attention to the following rice:
| Rice type | Aromatic rice (jasmine and basmati) | Indica rice | Japonica rice | Glutinous rice and specialty rice |
| Origin | Thailand, Vietnam, Cambodia, India, Pakistan | The foothills of the Himalayas in Eastern India | South China | Southeast Asia |
| Percent of global trade | 16-18% | 75% | 5-6% | 2-3% |
| Price (USD/MT) | $97.6 | $114.4 | $89.6 | $124.0 |
Source: USDA, Economic Research Service calculations; 2018
Among 4 outstanding names, basmati rice is the most popular wholesale rice type that has a considerable quantity exported to many destinations around the world. Particularly, 371,000 tonnes of basmati rice was exported to Europe in 2019-2020, in which the Netherlands was the biggest importer. Another importer of basmati is Iran when this country imported 1.32 million tonnes in the same period of time. Besides, the demand for basmati rice keeps increasing in China, Saudi Arabia, Indonesia, the USA, etc.
Popular rice types for wholesale
Elements contributing to a stable wholesale rice trade
To achieve success in the wholesale rice business, both importers and exporters should know the factors directly affecting this field. There are 5 elements contributing to a stable wholesale rice trade.
- Rice production volume
Stable sources of wholesale rice heavily depend on the total rice production capacity. If the crop has high productivity and produces large quantities, the amount of wholesale rice provided by suppliers will be greater.
Rice production volume
- Weather
Climatic conditions have intermediate effects on wholesale rice in terms of quantity and delivery. Poor weather will reduce production quantities, leading to a significant reduction in rice volume for wholesale. Moreover, wholesale rice trade among countries will be restricted since bad weather conditions prevent many ships from on-time departure.
Weather
- Shipment
Wholesale rice price varies due to the cost of transportation. In the case of the high delivery cost, suppliers have to lower the wholesale rice price to balance the final price.
Shipment
- Political policies
A successful wholesale rice business is associated with the government’s policies. For example, due to the regulation of the export quota, there is a restriction in the amount of Vietnamese wholesale rice exported to other areas. In Thailand, many economic fields including the wholesale rice trade have become chaotic because of unstable political situations.
Political policies
The recommendation of reputable wholesale rice suppliers
Choosing the right wholesale rice suppliers will help buyers have high-quality rice sources. Here are recommended wholesale rice suppliers for buyers to consider.
K-Agriculture wholesale rice supplier
Starting as a small company collecting rice and corn, K-Agriculture has become the best agricultural factory in Vietnam. With 25 years of development, K-Agriculture offers many different products of wholesale rice from fragrant rice to specialty rice at a reasonable price. This supplier of rice also has professional customer service and convenient delivery.
K-Agriculture wholesale rice supplier
Contact information:
WhatsApp: +84855555837 (Ms. Kris)
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Wonnapob wholesale rice supplier
Founded in 1895, Wonnapob Company is a wholesale rice supplier from Thailand. The company aims to supply the best rice products which are safe and healthy for humans and the environment.
Wonnapob wholesale rice supplier
Sunrise Foodstuff wholesale rice supplier
Another Vietnamese representative is Sunrise Foodstuff, with 10 years of development. The supplier provides wholesale rice for many customers in Eu, Africa, the U.S, and Singapore. Sunrise Foodstuff also offers a wide selection of products with high quality verified by many certificates.
Sunrise Foodstuff wholesale rice supplier
Lal Qilla wholesale rice supplier
If buyers are interested in the wholesale basmati rice trade, Lal Qilla is highly recommended when the company specializes in producing and providing basmati rice. Located in India – the motherland of basmati rice, Lal Qilla has many advantages to develop and release the best products.
Lal Qilla wholesale rice supplier
HAS Rice Pakistan wholesale rice supplier
HAS Rice Pakistan is a wholesale rice producer and supplier from Pakistan, offering many high-quality products in 1kg-100kg packages. Major customers of this wholesale rice supplier are from the EU and the Middle East.
HAS Rice Pakistan wholesale rice supplier
In conclusion, this article provides you with the information you need to know about wholesale rice. Hope you find this article useful. Please leave a comment for further explanation from experts from K-agriculture which is one of the biggest factories in agriculture in Vietnam!
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