Paddy rice market in Sri Lanka

Earlier Report Observations

From 2018 to 2020, the paddy rice market volume in Sri Lanka increased from 3 930 thousand tons to 5 121 thousand tons, indicating steady production expansion. Growth slowed in 2021, with the market volume stabilizing at 5 150 thousand tons. During this period, anti-competitive practices by large-scale millers, such as stock hoarding and exclusive supply agreements, coupled with inadequate paddy storage capacity for small millers, may have constrained further growth by disrupting normal market functioning.

In 2022, the market volume dropped sharply to 3 393 thousand tons. This decline coincided with ineffective enforcement of maximum retail prices by authorities and ongoing import control permits, which limited supply and reduced production incentives. However, in 2023, the volume recovered to 4 513 thousand tons, partly due to the government's announcement of new paddy purchase prices, which ensured a minimum income for farmers and supported production.

Production paddy rice in Sri Lanka

In kind, 2017-2020, K t

From 2017 to 2020, Sri Lanka ranked as the 18th largest producer of paddy rice globally.

Top producers of paddy rice, 2017-2020

World map of production of paddy rice, 2017-2020

Sri Lanka's paddy rice production grew for the third year in a row. In 2020, the country produced 5 121 thousand tonnes, marking an 11.5% increase from 2019. Over the 2017-2020 period, production surged by 114.9%, with an average annual growth rate of 29.0%.

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

In value, 2017-2020, M $ US

Paddy rice production in Sri Lanka continued its upward trend for the third consecutive year. In 2020, the output was valued at 6 468 million US dollars, a 43.8% rise compared to 2019. From 2017 to 2020, production value jumped by 145.4%, with a compound annual growth rate of 34.9%.

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

Exports paddy rice from Sri Lanka

Exports in kind, t

The market showed significant volatility during this period. Import levels varied by 2.4 times, with the low point in 2017 and the high in 2019. In 2020, Sri Lanka's cross-border shipments of paddy rice totaled 111.2 tonnes, a sharp decline of 10.9% from the previous year. The peak was recorded in 2019 at 124.8 tonnes, with the largest increase of 121.7% also occurring that year.

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

From 2017 to 2020, Canada, Maldives, and the United States were the top buyers of paddy rice from Sri Lanka, accounting for 24.5%, 22.2%, and 17.7% of exports in kind, respectively. Together, they made up 64.4% 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, K $ US

The market displayed an unstable pattern over these years. Exports fluctuated by 2.8 times, reaching a low in 2018 and a high in 2020. In 2020, Sri Lanka's paddy rice exports were valued at 140.5 thousand US dollars, a strong increase of 14.9% compared to 2019. The minimum value was 49.5 thousand US dollars in 2018, with the largest decline of 15.0% that year. The largest increase of 147.1% occurred in 2019.

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

During 2017-2020, Canada, the United States, and Maldives were the primary destinations for Sri Lanka's paddy rice exports in value terms, with shares of 27.3%, 19.9%, and 17.4%, respectively. This group accounted for 64.6% of total export flows.

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 paddy rice to Sri Lanka

Imports in kind, t

The market experienced high volatility in these years. Imports varied dramatically, with a low in 2019 and a peak in 2018, showing a 1 609-fold difference. In 2020, Sri Lanka imported 0.0 tonnes of paddy rice, a 71.4% increase from 2019. The minimum was 0.0 tonnes in 2019, while the maximum was 38.0 tonnes in 2018. The largest decline of 99.9% happened in 2019, and the largest increase of 35 028.9% occurred in 2018.

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

From 2017 to 2020, imports in kind were highly concentrated, with India alone representing 99.8% of total flows.

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, K $ US

Volatility marked the market during this timeframe. Imports showed a peak-to-trough amplitude of 161 times, with the low in 2019 and the high in 2018. In 2020, Sri Lanka imported 0.2 thousand US dollars worth of paddy rice, a 98.0% increase from the previous year. The minimum value was 0.1 thousand US dollars in 2019, and the maximum was 19.7 thousand US dollars in 2018. The largest decline of 99.4% was in 2019, while the largest increase of 4 398.7% took place in 2018.

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

In the 2017-2020 period, the import market was highly concentrated, with India accounting for 97.7% of total imports in value terms.

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

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