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White rice in bulk: Major factors affecting this field

Currently, white rice is leading the wholesale rice market. But in order to trade white rice in bulk, sellers or businesses need to understand the types of white rice, supplying countries, and factors affecting the market.

Outstanding types of white rice in bulk

White rice undergoes a milling process for the removal of outer parts (the hull, bran, and germ) to have a white color. White rice in bulk refers to white rice in large quantities that are sold to retailers or other wholesalers. 

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White rice in bulk

White rice in bulk comes in three main types due to the difference in grain length. 

  • Long-grain white rice: 

If the grain is 6.5mm long, it is long-grain white rice. Indica rice such as basmati and jasmine are long-grain rice, mainly grown in India, Pakistan, Thailand, and Vietnam.

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Long-grain white rice

  • Medium-grain white rice

Medium-grain white rice has a grain length of 5.2mm – 6.5mm. Arborio of Italia and Valencia of Spain are common medium-grain rice. 

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Medium-grain white rice

  • Short-grain white rice

With short-grain white rice, the grain is under 5.2mm long. Japonica is one of the famous short-grain rice, and it is from China and Vietnam.

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Short-grain white rice

Read more: The best rice flour for wholesale

The demand for white rice in bulk is different among countries. China is the largest importer of medium and short-grain white rice in bulk when the country had more than 50% of tariff-rate quota for medium and short-grain rice in 2002. Bangladesh is one of the major long-grain white rice in bulk buyers, with around 18.5 million tonnes of both non-basmati and basmati imported during 2019-2020. 

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China and Bangladesh are major consumers of basmati rice

Each type of white rice is favored in different areas around the world. Therefore, analyzing the market trend to determine a suitable type of white rice is vital to every wholesale business. the business should analyze the market trend to decide the suitable type of white rice in bulk.  

White rice in bulk major supply countries 

The majority of global demand for white rice is satisfied by 3 large exporters: India, Vietnam, and Thailand, which exported 26 million tonnes in total in 2020. 

  • India, Vietnam, and Thailand are major rice producers

In 2019, the total rice production in India, Vietnam, and Thailand were 118.87,  27.1, and 17.66 million tonnes, respectively. In addition, these countries have large rice-producing regions such as West Bengal (India) with 5.8 million ha, or the Mekong Delta (Vietnam) with 3.9 million ha. 

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Total white rice production in 2019 in India, Vietnam, and Thailand.

  • Many factories of white rice in bulk are located in the three countries

As the major rice producers, large rice mills and major traders which trade white rice in bulk are established in the three countries. Particularly,  the Mekong Delta in Vietnam only, has more than 582 rice milling factories, with a capacity of around 10000 tons/year. 

Read more: Top wholesale rice companies

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White rice factory

  • The government operates supporting policies for rice production and exports.

As rice production and exports contribute significantly to national GDP, the government of the three countries has developed many supporting policies. For example, the paddy mortgage plan, a lending program run by the Bank for Agriculture and Agricultural Cooperatives, is the principal Thai government rice policy (BAAC), supporting the capital for farmers. 

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Govermental policies affect white rice in bulk

Essential elements contribute to the market of white rice in bulk

The market of white rice in bulk operates on the factors related to white rice production, transportation, agricultural policies, and others. 

  • The supply chain of white rice in bulk

The supply chains of white rice in bulk rely on the amount of rice production. For example, in 2020, the amount of Vietnamese rice production reached 10.74 million tonnes, down 205 thousand tonnes compared to 2019. As a result, there was a 3.5% decrease in the volume of Vietnamese white rice in bulk exports, which was 6.15 million tonnes in total. 

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White rice fields

Read more: The best jasmine rice suppliers

Sufficient supply chains of white rice in bulk also influence export prices. Particularly, the price of Vietnamese rice for export dropped suddenly from 498 USD/tonne to 480 USD/tonne as traders cleared their warehouses to wait for the upcoming winter-spring crop. 

Factors affecting total white rice production include weather, diseases, and pests. For instance, a severe drought in 2019 severely impacted  Thai rice production, which declined by 40% (3.2 million tonnes). The 2018 flood in Vietnam damaged over 2000 ha of rice farming areas in the Mekong Delta, resulting in a significant decrease in the total rice volume produced. 

  • Logistics

Normally, white rice in bulk is transported by sea freight; therefore logistic costs will directly affect the rice price. For example, the CIF price of Thai white rice in bulk has increased from 498 USD/tonne to 510 USD/tonne. The same as India, the CIF price of white rice in bulk has risen from 378 USD/tonne to 383 USD/tonne. The reason is increasing freight charges, especially, routes to New York and Los Angeles. 

Reasons for the increase in transportation costs could be bad weather, clearance delay, or social distancing due to Covid-19. 

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Logistics has direct impacts on white rice in bulk

  • Governmental policies

There is a close connection between the market of white rice in bulk and the policies of the local government. For example, to ensure food security in the context of the covid 19 epidemic, the Vietnamese government issued a temporary ban on rice exports until May 2020. This policy has directly affected the export volume of white rice within 3 months.

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Governmental policies

  • Covid-19

The covid-19 pandemic has a huge influence on the price of white rice in bulk. In particular, the price of white rice in bulk in India fell to 345 – 348 USD/ MT, while in Thailand, a metric ton of white rice costs 385 – 408 USD/MT, down 100 USD/MT compared to 2019. The reason is from social distancing, leading to the interruption in international transportation. 

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The covid-19 pandemic has a huge influence on the price of white rice in bulk.

White rice in bulk: top 5 suppliers in this field

If you are a wholesaler or a retailer looking for reliable white rice in bulk supply chains, here is a list of the top 5 suppliers. 

Vietnam Southern Food Corporation II – a supplier of white rice in bulk

Vietnam Southern Food Corporation II is one of the reputable companies of white rice in bulk from Vietnam. With a capacity of 4.5 million tonnes per year, Vinafood II is a trustworthy partner to provide large quantities of white rice in bulk to countries in Asia, the Middle East, and Europe. 

The flagship products from Vinafood II are Bong su xanh fragrant white rice, Bong su do fragrant white rice, Bong buoi vang fragrant white rice. 

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Vietnam Southern Food Corporation II – a supplier of white rice in bulk

K-Agriculture Factory – a supplier of white rice in bulk

K-Agriculture Factory is the leading supplier of white rice in bulk from Vietnam. Each year, the factory produces and distributes over 3 million tonnes of rice to 80 countries. The white rice line includes ST, jasmine rice, japonica, OM5451, and IR504. 

K-Agriculture Factory guarantees the best rice quality because it has white rice-growing areas and factories located in the Mekong Delta. Other factors such as reasonable prices, professional customer services, and diverse payment methods make the brand of K-Agriculture Factory. 

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K-Agriculture Factory – a supplier of white rice in bulk

Wonnapob Company – a supplier of white rice in bulk

Wonnapob Company was established in 1895. Now, the company is one of the best suppliers of Thai white rice in bulk with the finest quality to the international market.

Bulk white rice products consist of Thai Hom Mali, Thai Jasmine rice, Thai Special Mixed rice, etc. Wonnapb’s white rice is GMO-Free and certified Food Safety Standard. 

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Wonnapob Company – a supplier of white rice in bulk

LT Foods – a supplier of white rice in bulk

LT Foods is a corporation of famous rice brands in India such as Daawat, Royal, EcoLife, etc. The company is currently supplying white rice in bulk to 65 countries.

In 2014, LT Foods was awarded the Trusted Brand Award, voted by consumers, Brand Excellence Award by Economic Times, and Product of Year Award by Nielsen. 

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LT Foods – a supplier of white rice in bulk

American Commodity Company – a supplier of white rice in bulk 

American Commodity Company is a bulk supplier of white rice in the US, distributing the product to 100 different countries around the world. ACC imports white rice in bulk from California and then processed and packaged with strict FDA requirements. The output product will have the best quality and be packed very carefully.

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American Commodity Company – a supplier of white rice in bulk

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