Milled rice and broken rice market in Sri Lanka

Earlier Report Observations

The Sri Lankan milled rice market grew from 2.7 million tonnes in 2018 to 3.4 million tonnes in 2021. This expansion was supported by the government's reintroduction of fertilizer subsidies in 2021, which encouraged paddy cultivation and led to a bumper harvest. Additionally, in 2020, a high average milling outturn of 68% increased the rice yield from harvested paddy, boosting market supply.

Market volume fell to 2.9 million tonnes in 2022 as an oligopoly of large-scale millers consolidated power, enabling them to purchase paddy at low prices and sell rice at high markups, which distorted incentives and reduced market activity. By 2023, the market stabilized near 2.9 million tonnes, with the government announcing plans to cultivate 1.3 million hectares and purchase 300,000–400,000 tonnes of paddy for distribution through cooperative networks to counter miller dominance.

In 2024, the Anti-Agricultural Economic Sabotage Act was enacted to penalize hoarding and smuggling of rice, aiming to protect farmers and consumers. However, the market remained dominated by a few large millers who controlled pricing and production, while state entities like the Paddy Marketing Board operated with outdated infrastructure.

Production milled rice and broken rice in Sri Lanka

In kind, 2017-2020, K t

From 2017 to 2020, Sri Lanka ranked 18th globally in the production of milled rice and broken rice.

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

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

Sri Lanka's production of milled rice and broken rice increased for the third consecutive year. In 2020, the country produced 3 207 thousand tonnes, marking a 9.3% rise compared to the previous year. Over the 2017-2020 period, production grew by 106.3%, with an average annual growth rate of 27.3%.

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

In value, 2017-2020, M $ US

The value of Sri Lanka's milled rice and broken rice production rose for the third year in a row. In 2020, output was valued at 2 929 million US dollars, showing a 5.9% increase from the year before. Between 2017 and 2020, production value increased by 85.1%, with an average annual growth rate of 22.8%.

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

Exports milled rice and broken rice from Sri Lanka

Exports in kind, K t

Export volumes showed an unstable trend during this period. The lowest level was recorded in 2017, while the highest was in 2020, with a 2.3-fold difference between these years. In 2020, Sri Lanka exported 8.1 thousand tonnes of milled rice and broken rice, which was 91.1% higher than in 2019. The largest decline occurred in 2019, at 5.3%.

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

From 2017 to 2020, Sri Lanka's exports of milled rice and broken rice were distributed across a wide range of countries. Canada accounted for 15.5% of export volume, the United Kingdom for 14.6%, and the United Arab Emirates for 14.0%. Together, these three markets made up 44.1% of total exports.

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, M $ US

Export values displayed volatility over the observed timeframe. The lowest point was in 2017, and the peak was in 2020, with a two-fold difference. In 2020, the value of milled rice and broken rice exports from Sri Lanka reached 7.4 million US dollars, representing an 85.2% surge compared to the previous year. The most significant drop was in 2019, at 14.3%.

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

Between 2017 and 2020, the United Arab Emirates, Australia, and Canada were notable buyers of Sri Lanka's milled rice and broken rice in value terms, with shares of 14.1%, 13.8%, and 13.7%, respectively. However, their combined share was only 41.6% of total export value, indicating a diversified market.

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 milled rice and broken rice to Sri Lanka

Imports in kind, K t

Sri Lanka's imports of milled rice and broken rice declined for the third consecutive year. In 2020, import volume was 15.8 thousand tonnes, a 34.8% decrease from 2019. Over the 2017-2020 period, imports fell by 97.9%, with an average annual decline of 72.4%.

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

From 2017 to 2020, India and Myanmar were the primary sources for Sri Lanka's imports of milled rice and broken rice in volume terms, while other countries played a smaller role.

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, M $ US

The value of milled rice and broken rice imports into Sri Lanka dropped for the third year in a row. In 2020, imports totalled 10.4 million US dollars, an 18.5% decrease compared to 2019. Between 2017 and 2020, import value declined by 96.5%, with an average annual reduction of 67.4%.

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

Over the 2017-2020 period, India and Pakistan were the main suppliers of milled rice and broken rice to Sri Lanka in value terms, together accounting for 82.9% of total imports. The remaining imports were spread across 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