Milled rice and broken rice market in MERCOSUR

Earlier Report Observations

The market volume for milled rice and broken rice in MERCOSUR fluctuated significantly between 2018 and 2023, starting at 9.3 million tons before contracting sharply to 7.9 million tons in 2019. A recovery phase followed, with consumption rising to 8.3 million tons in 2020 and peaking at 9.6 million tons in 2021. The market then contracted again to 8.6 million tons in 2022, stabilizing at 8.8 million tons in 2023.

In value terms, the market displayed even greater volatility, dropping to $3.6 billion in 2019 before surging by over 30% to $5.3 billion in 2021. After a decline to $4.6 billion in 2022, the market value rebounded strongly to $5.6 billion in 2023, reflecting substantial price movements or changes in the product mix during the period.

Key developments in 2024 included Brazil's provisional elimination of import tariffs for rice from countries outside Mercosur, a measure designed to increase supply and stabilize domestic prices following crop-reducing floods in Rio Grande do Sul. This policy shift sparked trade tensions within the bloc, with Brazil authorizing its supply agency to import up to 1 million tons and accusing Mercosur partners of price speculation. Furthermore, the approval of the Mercosur-European Union trade agreement, which establishes a duty-free quota for milled rice, created new export prospects for the region's producers.

Production milled rice and broken rice in MERCOSUR

In kind, 2017-2020, K t

Top producers of milled rice and broken rice, 2017-2020

World map of production of milled rice and broken rice, 2017-2020

Following two consecutive years of decline, MERCOSUR's production of milled rice and broken rice rebounded in 2020. That year, the region produced 10 047 thousand tons, marking a 2.9% increase compared to 2019. Looking at the broader period from 2017 to 2020, overall production fell by 11.7%, which translates to an average annual decline of 4.1%. The lowest production level was recorded in 2019 at 9 765 thousand tons, which also saw the steepest drop of 11.7% during this timeframe.

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

In value, 2017-2020, M $ US

After two years of contraction, the value of MERCOSUR's milled rice and broken rice production showed growth in 2020. Output was valued at 4 791 million US dollars that year, representing a 12.5% increase over 2019. However, across the 2017-2020 period, production value decreased by 12.9%, averaging an annual decline of 4.5%. The lowest value was recorded in 2019 at 4 258 million US dollars, which also experienced the most significant decline of 14.5%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports milled rice and broken rice from MERCOSUR

Exports in kind, K t

In 2020, MERCOSUR exported 2 132 thousand tons of milled rice and broken rice, a 12.2% increase compared to the previous year. Over the 2017-2020 period, export volumes grew by 17.7%, with an average annual growth rate of 5.6%. The largest decline occurred in 2019, when exports fell by 3.5%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

Between 2017 and 2020, MERCOSUR's milled rice and broken rice exports were distributed across numerous markets, resulting in a diversified trade structure. The top three destinations—Peru (13.2% of export volume), Senegal (9.0%), and Iraq (7.8%)—collectively accounted for just 30.1% of total exports.

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

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

Exports in value, M $ US

The value of MERCOSUR's milled rice and broken rice exports reached 1 016 million US dollars in 2020, showing a strong 22.7% increase from the previous year. From 2017 to 2020, export value grew by 16.1%, equivalent to an average annual rate of 5.1%. The lowest value was recorded in 2019 at 829 million US dollars, which also saw the largest decline of 6.5% during this period.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

During the 2017-2020 period, Peru (16.6% of export value), Iraq (8.6%), and Chile (7.1%) emerged as the largest buyers of MERCOSUR's milled rice and broken rice. However, their combined share amounted to only 32.3% of total export value, highlighting the region's diversified export market structure.

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

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

Imports milled rice and broken rice to MERCOSUR

Imports in kind, K t

Import volumes of milled rice and broken rice into MERCOSUR showed significant volatility between 2017 and 2020. After reaching a low of 18 thousand tons in 2019, imports surged to 345 thousand tons in 2020—a remarkable 1 808.4% increase. This represents a 19-fold difference between the two years. The largest decline occurred in 2019, when imports fell by 91.4%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Guyana (1.5% of import volume), Suriname (1.3%), and India (1.2%) were consistently the leading sources for MERCOSUR's milled rice and broken rice imports. Together, these three countries accounted for just 4.0% of total import volume, indicating a highly fragmented supply structure.

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

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

Imports in value, M $ US

Following two years of decline, the value of milled rice and broken rice imports into MERCOSUR increased in 2020. Imports totaled 251 million US dollars that year, representing a steep 51.6% rise compared to 2019. Over the 2017-2020 period, import value grew by 9.1%, averaging 3.0% annually. The lowest value was recorded in 2019 at 166 million US dollars, while the largest decline occurred in 2018 with a 25.6% drop.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Between 2017 and 2020, Italy (2.6% of import value), Guyana (1.7%), and Suriname (1.3%) consistently ranked as the main sources for MERCOSUR's milled rice and broken rice imports by value. Their combined share represented just 5.6% of total import value, reflecting a highly diversified import structure.

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

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