Latest News

Rice Markets Track India Crop, Nepal Planting and Pakistan Trade

Top Rice News: India’s rice output faces a potential refusal, putting prices and exports under an eye sight, while Nepal steps up efforts to mechanise rice transplantation. Meanwhile, Pakistani rice exporters cope up tougher competition from Indian suppliers in the Saudi market.

Lower Rice Crop Outlook Puts India’s Prices and Exports in Focus

India’s rice sector is facing growing supply concerns as deficient monsoon rainfall, lower acreage and declining reservoir levels weigh on the 2026 crop outlook. Production is projected to fall by nearly 10 million tonnes, or around 6.5%, from last year’s record level, marking the steepest annual decline in almost two decades.

The anticipated production shortfall is already adding pressure to both domestic and export rice prices. However, the government’s sizeable rice stocks, estimated at close to 60 million tonnes, could help cushion the supply gap and support continued exports despite the weaker harvest.

The impact may also spread to other agricultural markets. Any sustained increase in broken rice prices could raise feed costs for poultry and livestock, potentially increasing production costs for eggs, chicken and dairy products.

Meanwhile, weaker reservoir storage levels could pose another challenge by affecting winter rice planting, raising concerns over supplies in the months ahead and adding further uncertainty to India’s rice market.

Why Nepal Is Turning to Rice Mechanisation?

Nepal is looking to accelerate the transition from manual to mechanised rice transplanting as it seeks to boost farm productivity, ease labour shortages and promote more sustainable rice cultivation. Rice experts from research, academic and agricultural extension bodies stressed the importance of developing cost-effective machinery adapted to Nepal’s diverse farming conditions. The need for a practical mechanisation strategy was discussed at a seminar hosted by the KOPIA Nepal Centre in Khumaltar, where stakeholders also outlined priorities for the proposed 2028–2030 KOPIA Nepal Rice Project.

The mechanisation drive is expected to tackle key constraints facing Nepal’s rice sector, including labour shortages, higher cultivation expenses and continued reliance on conventional farming methods. Experts said the transition will require machinery tailored to local conditions, along with technical expertise and stronger extension support to ensure effective adoption. Greater use of mechanised planting could improve transplanting efficiency, lower farm costs and lift rice yields, while also contributing to Nepal’s efforts to expand domestic rice production and accelerate the modernisation of its agricultural sector.

A challenge to Pakistani Rice Exporters in Saudi Market

Pakistani food exporters are targeting greater sales in Saudi Arabia, but rice suppliers are encountering strong competition from lower-priced Indian shipments. Thirty Pakistani companies, including 14 rice exporters, took part in the Saudi Food Show in Jeddah, where exporters reported significant interest from Saudi buyers.

However, price competition from India remains a major hurdle. Waqar Rice Mills said its Pakistani basmati rice was quoted at around $1,050 per metric tonne, including freight, while comparable Indian rice was available at roughly $850 per tonne.

Buyers reportedly also pointed to faster delivery and appealing packaging offered by Indian suppliers. The competitive pressure comes as Pakistan’s rice export earnings fell by nearly 50% to around $940 million during July–December 2025.

With rice exporters facing pricing challenges in Saudi Arabia, Pakistani companies are increasingly looking towards processed foods, beverages and other agricultural products to expand their presence in Saudi Arabia and other Gulf markets.