Milled rice and broken rice market in El Salvador

Earlier Report Observations

The market for milled rice and broken rice in El Salvador experienced notable shifts between 2018 and 2023. A significant expansion occurred in 2020, with market volume rising to over 92,000 t. This growth was primarily driven by a regional surge in imports, aided by the elimination of import tariffs under the DR-CAFTA trade agreement, and heightened consumption during the COVID-19 health and economic crisis.

After a contraction in 2021, the market recovered in 2022 as the Ministry of Agriculture and Livestock began providing inputs like fertilizers and pest control to producers, boosting domestic output. However, the market volume fell again in 2023. This decline coincided with a continued reduction in sown area and national production, alongside the government's introduction of a regulated price regime for green paddy rice designed to protect small-scale farmers.

In the following years, the market context remained shaped by high import dependence to meet domestic demand. Ongoing efforts included the discussion and implementation of the regulated price framework for paddy rice and international cooperation, such as an agreement with Colombia for new rice varieties, to address productivity. Global supply factors, including India's export ban on non-basmati white rice, also indirectly influenced the market.

Production milled rice and broken rice in El Salvador

In kind, 2018-2021, t

Top producers of milled rice and broken rice, 2018-2021

World map of production of milled rice and broken rice, 2018-2021

El Salvador's production of milled and broken rice has increased for the second consecutive year. In 2021, the country produced 70 259 tons, showing no significant change from the previous year. Over the period from 2018 to 2021, production grew by 2.8%, with an average annual growth rate of 0.9%. The lowest production level was recorded in 2019 at 65 325 tons, which represented the largest decline of 4.4%. In contrast, the largest increase occurred in 2020, with production rising by 7.4%.

Annual dynamics of production in El Salvador in kind, 2018-2021, t

In value, 2018-2021, K $ US

El Salvador's production of milled and broken rice has increased for the second consecutive year. In 2021, the output was valued at 50 513 thousand US dollars, marking an 8.1% rise compared to 2020. From 2018 to 2021, production value increased by 10.2%, with an average annual growth rate of 3.3%. The lowest value was recorded in 2019 at 43 559 thousand US dollars, which saw the largest decline of 5.0%.

Annual dynamics of production in El Salvador in value, 2018-2021, K $ US

Exports milled rice and broken rice from El Salvador

Exports in kind, t

The market showed an unstable trend throughout the period. Exports reached their lowest point in 2020 and peaked in 2021, with a threefold difference between these years. In 2021, El Salvador exported 3 684 tons of milled and broken rice, representing a 198.8% increase year-over-year. The minimum volume was recorded in 2020 at 1 233 tons, which experienced the largest decline of 59.3%.

Annual dynamics of product's exports from El Salvador in kind, 2018-2021, t

From 2018 to 2021, Costa Rica, Honduras, and Guatemala were the main destinations for El Salvador's milled and broken rice exports, accounting for 88.0% of total exports in volume. Costa Rica led with 42.7%, followed by Honduras at 32.8%, and Guatemala at 12.4%.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from El Salvador in kind, 2018-2021

Exports in value, K $ US

The market exhibited volatility during this period. Exports hit their lowest point in 2020 and reached a high in 2021, varying by a factor of 3.2. In 2021, the value of milled and broken rice exports from El Salvador amounted to 2 648 thousand US dollars, a 222.7% increase from the previous year. The minimum value was recorded in 2020 at 821 thousand US dollars, which saw the largest decline of 59.4%.

Annual dynamics of product's exports from El Salvador in value, 2018-2021, K $ US

From 2018 to 2021, Costa Rica, Honduras, and Guatemala formed the primary market cluster for El Salvador's milled and broken rice exports by value, together representing 87.2% of total flows. Costa Rica accounted for 42.6%, Honduras for 31.8%, and Guatemala for 12.8%.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from El Salvador in value, 2018-2021

Imports milled rice and broken rice to El Salvador

Imports in kind, t

In 2021, El Salvador imported 10 954 tons of milled and broken rice, a 53.1% decrease from the previous year. Between 2018 and 2021, imports fell by 38%, equivalent to an annualized decline of 14.7%. The highest import volume was recorded in 2020 at 23 353 tons, which saw the largest increase of 51.1%.

Annual dynamics of product's imports to El Salvador in kind, 2018-2021, t

From 2018 to 2021, Nicaragua, Costa Rica, and Honduras were the leading sources of milled and broken rice imports to El Salvador by volume, jointly accounting for 81.1% of total flows. Nicaragua contributed 32.2%, Costa Rica 27.8%, and Honduras 21.2%.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to El Salvador in kind, 2018-2021

Imports in value, K $ US

Market behavior was characterized by volatility during these years. Imports peaked in 2020 and dropped to their lowest point in 2021, varying by three times. In 2021, El Salvador's imports of milled and broken rice were valued at 4 561 thousand US dollars, a 66.5% decrease from the previous year. The maximum value was recorded in 2020 at 13 600 thousand US dollars, which experienced the largest increase of 116.4%.

Annual dynamics of product's imports to El Salvador in value, 2018-2021, K $ US

Over the period from 2018 to 2021, Nicaragua, Costa Rica, and Honduras made the largest contributions to El Salvador's milled and broken rice imports by value, jointly accounting for 65.4% of total flows. Nicaragua led with 24.8%, followed by Costa Rica at 21.9%, and Honduras at 18.6%.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to El Salvador in value, 2018-2021