Milled rice and broken rice market in Nepal

Earlier Report Observations

From 2018 to 2023, domestic production of milled rice and broken rice in Nepal increased steadily from 2.8 million tonnes to 3.3 million tonnes. This growth was supported by improved chemical fertilizer management through an international global tender system introduced in 2021, which enhanced agricultural productivity. Additionally, encouragement of private sector participation in agriculture from 2022 onwards helped boost output.

Market volume peaked at 3.7 million tonnes in 2021 before declining to 3.4 million tonnes in 2023. The initial expansion was facilitated by the government's diversification of grain import sources beyond India in 2018 and the establishment of strategic rice reserves by the state-owned Food Management and Trading Company in 2019. The subsequent contraction was primarily due to a sharp drop in imports, which fell from over 600 thousand tonnes in 2021 to 137 thousand tonnes in 2023, even as domestic production rose.

State interventions consistently shaped the market. In 2023, the government operated discount shops offering price cuts on rice, managed by Salt Trading Corporations Limited and Food Management and Trading Company Limited, aiming to stabilize access. Market monitoring was also strengthened through digitalization and increased authority for local bodies.

Production milled rice and broken rice in Nepal

In kind, 2017-2020, K t

From 2017 to 2020, Nepal ranked 15th globally in terms of milled rice and broken rice production volume.

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

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

Nepal's production of milled rice and broken rice grew for the third consecutive year. In 2020, the country produced 3 084 K t, showing a slight year-over-year increase of 1.8%. Between 2017 and 2020, production rose by 11.6%, which translates to an annualized growth rate of 3.7%.

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

Exports milled rice and broken rice from Nepal

Exports in kind, K t

In 2018, Nepal's cross-border shipments of milled rice and broken rice amounted to 0.0 K t, representing a sharp decline of 92.7% compared to the previous year.

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

Between 2017 and 2020, the main destinations for Nepal's exports in kind were China (40.0% of exports), Japan (31.0% of exports), and South Korea (16.9% of exports). Together, these three countries accounted for 87.9% of total export flows.

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

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

Exports in value, M $ US

In 2018, Nepal exported 0.0 M $ US worth of milled rice and broken rice, indicating an abrupt year-over-year reduction of 97.4%.

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

From 2017 to 2020, France (46.9% of exports in value terms), China (26.5% of exports in value terms), and South Korea (15.9% of exports in value terms) led the structure of Nepal's exports in value terms. Collectively, they represented 89.3% of total export flows.

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

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

Imports milled rice and broken rice to Nepal

Imports in kind, K t

In 2020, Nepal imported 594.2 K t of milled rice and broken rice, reflecting a 34.1% rise compared to the previous year. Between 2017 and 2020, imports increased by 31.9%, equating to an annualized rate of 9.7%. The lowest import volume was recorded in 2019 at 443.2 K t, which also saw the largest decline of 24.2%.

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

From 2017 to 2020, India was the nearly exclusive supplier of milled rice and broken rice to Nepal, accounting for 99.1% of total imports in kind.

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

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

Imports in value, M $ US

In 2020, Nepal's milled rice and broken rice imports totaled 241.8 M $ US, up by 21.8% compared to 2019. Between 2017 and 2020, imports increased by 21.1%, with an annualized growth rate of 6.6%. The minimum value was recorded in 2019 at 198.6 M $ US, while the maximum value was in 2018 at 243.0 M $ US. The largest decline occurred in 2019, with a drop of 18.3%.

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

Throughout the period from 2017 to 2020, India played a dominant role in Nepal's imports in value terms, consistently accounting for 98.9% of total flows.

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

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