Broken rice market in Sri Lanka

Earlier Report Observations

In 2018, the broken rice market reached 120.6 thousand tons, supported by peak rice imports that supplemented domestic supply. However, the market was characterized by an oligopolistic structure with a few large millers manipulating prices, and the state-owned Paddy Marketing Board faced financial instability. The following year, market volume fell sharply to 94.1 thousand tons as imports dwindled to minimal levels, exacerbated by continued government price controls that distorted market signals.

Market volume recovered to 101.7 thousand tons in 2020 due to balanced rice production and government policies allowing imports during deficits. Growth continued to 104.7 thousand tons in 2021 despite emerging fertilizer shortages and drought, partly because of sustained import channels. During this period, consumer preferences shifted toward healthier red rice varieties, though supply constraints began to surface.

From 2022, severe drought and acute fertilizer shortages – worsened by import restrictions and global cost surges from the Russia-Ukraine war – reduced production, pulling market volume down to 103.4 thousand tons. Strict maximum retail price controls introduced in May 2022 further strained supply. In 2023, volume declined to 100.3 thousand tons as high input costs and concerns over harvest adequacy persisted, while the oligopolistic miller dominance and inadequate storage infrastructure continued to hinder market efficiency.

Production broken rice in Sri Lanka

In kind, 2017-2020, K t

From 2017 to 2020, Sri Lanka maintained the 25th position globally in terms of broken rice production volume.

Top producers of broken rice, 2017-2020

World map of production of broken rice, 2017-2020

In 2020, Sri Lanka produced 101.9 K t of broken rice, marking a moderate increase of 8.5% compared to 2019. Over the period from 2017 to 2020, production grew by 23.4%, which translates to an annualized growth rate of 7.3%. The largest decline occurred in 2019, with a drop of 2.1%, while the largest increase was recorded in 2018, at 16.2%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, K t

Exports broken rice from Sri Lanka

Exports in kind, t

The data shows irregular changes, reflecting a volatile market environment. Exports reached their lowest point in 2019 at 15 t and peaked in 2018 at 351 t, representing a 23-fold difference between these years. In 2020, Sri Lanka exported 150 t of broken rice, a sharp year-over-year increase of 885.4%. The largest decline was in 2019, at 95.6%, while the largest increase occurred in 2018, at 1 558.7%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

Between 2017 and 2020, Canada, India, and Germany were the top buyers of broken rice from Sri Lanka, accounting for 31.0%, 27.0%, and 16.9% of exports in kind, respectively. Together, these three countries represented 74.8% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, K $ US

Market performance showed noticeable fluctuations during this period. The minimum value was recorded in 2019 at 13 K $ US, while the maximum was in 2018 at 189 K $ US, resulting in a 14.4-fold variation. In 2020, Sri Lanka exported 118 K $ US of broken rice, an increase of 798.4% compared to the previous year. The largest decline was in 2019, at 93.1%.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, Canada, Germany, and India led the structure of exports in value terms, with shares of 30.3%, 20.8%, and 14.2%, respectively. Combined, these three countries accounted for 65.3% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports broken rice to Sri Lanka

Imports in kind, t

Broken rice imports to Sri Lanka declined for the third consecutive year. In 2020, imports stood at 29 t, which is 88.9% lower than in 2019. Over the 2017-2020 period, imports decreased by 100%, with a compound annual growth rate (CAGR) of -92.9%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

Throughout 2017-2020, India dominated broken rice imports to Sri Lanka in kind, holding 85.1% of total flows. Other countries each had significantly smaller shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, K $ US

Cross-border shipments of broken rice to Sri Lanka declined for the third year in a row. In 2020, imports registered 11 K $ US, showing a steep contraction of 88.3% year-over-year. Over the 2017-2020 period, imports decreased by 100%, with a compound annual growth rate (CAGR) of -92.5%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, India consistently accounted for 85.0% of total imports in value terms, indicating a high concentration on this market. The remaining share was distributed among other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020