Paddy rice market in Paraguay

Earlier Report Observations

The market volume for paddy rice in Paraguay fluctuated significantly between 2018 and 2023, largely driven by extreme weather conditions. A severe drought in 2020 reduced the harvest by 25%, pulling market volume down to 939 000 metric tons. After a recovery to 1 115 000 metric tons in 2021, another drought in 2022 again cut production by 25%, shrinking the market to 844 000 metric tons. By 2023, volume rebounded to 933 000 metric tons, aided by lower exports as international rice prices fell following India's export reopening.

Government price support policies played a stabilizing role throughout the period. In 2018, a 52% expansion in planted area, spurred by state incentives and cultivation expansion into the Chaco region, laid the groundwork for higher production. Starting in 2019, minimum price schemes and storage incentive programs were introduced, including Resolution 241 in 2020 that set minimum purchase prices to protect small producers, and the definitive approval of the regulated price regime in 2022. These measures ensured price transparency and supported growers during market swings.

For 2024 and 2025, support programs continued, such as the Dry Paddy Rice Storage Incentive Program and new resolutions adjusting minimum prices, reflecting ongoing efforts to manage the market and safeguard producer incomes.

Production paddy rice in Paraguay

In kind, 2018-2021, K t

Top producers of paddy rice, 2018-2021

World map of production of paddy rice, 2018-2021

Paraguay's paddy rice production declined after two years of growth. In 2021, the country produced 1 181 K t of paddy rice, marking a slight decrease of 0.6% compared to the previous year. Looking at the period from 2018 to 2021, production increased by 32%, which translates to an annualized growth rate of 9.7%. The highest production level was recorded in 2020 at 1 188 K t, with the largest year-over-year increase occurring in 2019 at 19.5%.

Annual dynamics of production in Paraguay in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Paraguay's paddy rice production value increased for the third consecutive year. In 2021, the output was valued at 322.0 M $ US, showing an uptick of 11.3% from 2020. Over the 2018-2021 period, production value rose by 56.6%, with a compound annual growth rate (CAGR) of 16.1%.

Annual dynamics of production in Paraguay in value, 2018-2021, M $ US

Exports paddy rice from Paraguay

Exports in kind, K t

The market exhibited significant volatility during these years. In 2021, Paraguay exported 65.2 K t of paddy rice, representing an abrupt decline of 73.8% compared to the previous year. The maximum export volume was recorded in 2020 at 249.3 K t, while the minimum was in 2021. The difference between these years was a 3.8-fold variation, with the largest increase occurring in 2020 at 253.5%.

Annual dynamics of product's exports from Paraguay in kind, 2018-2021, K t

From 2018 to 2021, Brazil, Mexico, and Panama were the main destinations for Paraguay's paddy rice exports in kind. Brazil accounted for 57.2% of exports, Mexico for 22.2%, and Panama for 11.2%. Together, these three countries represented 90.7% of total exports in kind.

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

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

Exports in value, K $ US

The market showed signs of volatility over the observed period. In 2021, paddy rice export volumes from Paraguay amounted to 17 780 K $ US, equivalent to a sudden contraction of 70.7% from 2020. The minimum value was recorded in 2019 at 13 940 K $ US, while the maximum was in 2020 at 60 712 K $ US. The difference between these years was a 4.4-fold variation, with the largest increase occurring in 2020 at 335.5%.

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

Throughout 2018-2021, Brazil, Mexico, and Panama remained the primary markets for Paraguay's paddy rice exports in value terms. Brazil accounted for 55.8% of exports, Mexico for 23.6%, and Panama for 12.0%. Collectively, these three countries represented 91.4% of total export flows.

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

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

Imports paddy rice to Paraguay

Imports in kind, K t

Cross-border shipments of paddy rice to Paraguay declined for the third consecutive year. In 2021, imports amounted to 0.0 K t, down by 82.4% compared to 2020. Over the 2018-2021 period, imports decreased by 95.9%, with a compound annual growth rate (CAGR) of -65.4%.

Annual dynamics of product's imports to Paraguay in kind, 2018-2021, K t

From 2018 to 2021, Brazil and Argentina were the dominant sources for paddy rice imports in kind to Paraguay, jointly accounting for 92.3% of total flows. The remaining volume was distributed among smaller markets.

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

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

Imports in value, K $ US

Imported paddy rice volumes to Paraguay declined for the third consecutive year. In 2021, imports registered 31 K $ US, which is 64.8% lower than the previous year. Over the 2018-2021 period, imports decreased by 91.4%, with a compound annual growth rate (CAGR) of -55.9%.

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

Throughout 2018-2021, Argentina, Brazil, and Lebanon were the key directions for paddy rice imports in value terms to Paraguay. Argentina accounted for 47.9% of imports, Brazil for 28.6%, and Lebanon for 10.2%. Together, these three countries represented 86.7% of total import flows.

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

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