Rice market in Honduras

Earlier Report Observations

From 2018 to 2021, the Honduran rice market volume fluctuated, declining from 251.8 thousand tons to 222.0 thousand tons. This occurred against the backdrop of progressive tariff reductions under CAFTA-DR, which fell from 33.75% in 2018 to 15% in 2021, increasing the inflow of cheaper imported rice and pressuring local production. Domestic output dropped from 59.6 thousand tons to 53.8 thousand tons over this period, except for a temporary rise in 2020. Structural sector issues, including lack of government support and low investment, exacerbated the situation.

In 2022, market volume jumped to 266.1 thousand tons despite a further fall in production to 51.1 thousand tons, as imports surged to 219.4 thousand tons. This coincided with tariffs cut to 7.5% and the mass migration of an estimated 52% of rice producers to the United States due to harsh conditions, sharply reducing domestic supply. By 2023, rice import tariffs reached 0%, further facilitating imports, while production plunged to 34.1 thousand tons, covering only about 10% of domestic demand. The government declared a food emergency and tasked the Honduran Institute of Agricultural Marketing (Ihma) with guaranteeing purchases of local rice to incentivize production.

By 2024, rice production stabilized with a slight decrease, while yields improved due to new varieties and cultivation practices. The government continued supporting the sector through Ihma and implemented the Productive Technology Bonus (BTP) to halt the decline. Imports remained high, reflecting ongoing reliance on foreign supplies, while exports rose to 18.7 thousand tons.

Production rice in Honduras

In kind, 2017-2020, K t

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

Honduras produced 65.6 thousand tons of rice in 2020, marking a significant 16.1% increase compared to 2019. Over the 2017-2020 period, production grew by 10.1%, with an average annual growth rate of 3.2%. The lowest production level was recorded in 2019 at 56.5 thousand tons, which also saw the largest decline of 5.2%.

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

In value, 2017-2020, K $ US

In 2020, rice production in Honduras was valued at 24 093 thousand US dollars, showing a robust 21.8% year-over-year increase. Between 2017 and 2020, production value rose by 14.1%, equivalent to an annualized growth rate of 4.5%. The minimum value occurred in 2019 at 19 782 thousand US dollars, which experienced the largest decline of 9.1%.

Annual dynamics of production in Honduras in value, 2017-2020, K $ US

Exports rice from Honduras

Exports in kind, K t

Following a two-year decline, Honduras's rice export volume increased in 2020 to 6.1 thousand tons, representing an 8.3% year-over-year growth. Over the 2017-2020 period, exports decreased by 22.8%, with an average annual decline of 8.3%. The lowest export volume was recorded in 2019 at 5.7 thousand tons, while the largest drop occurred in 2018 at 21.1%.

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

From 2017 to 2020, El Salvador was the primary market for Honduran rice exports in volume terms, accounting for 70.9% of total exports, with other destinations making up the remainder.

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

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

Exports in value, K $ US

After two years of decline, Honduras's rice export value increased in 2020 to 2 249 thousand US dollars, showing a substantial 13.6% gain compared to the previous year. Between 2017 and 2020, export value fell by 19.9%, equating to an average annual decrease of 7.1%. The minimum value was recorded in 2019 at 1 980 thousand US dollars, while the largest decline occurred in 2018 at 18.8%.

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

Throughout 2017-2020, El Salvador dominated Honduran rice exports in value terms, capturing 75.8% of total flows, with other countries holding significantly smaller shares.

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

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

Imports rice to Honduras

Imports in kind, K t

In 2020, Honduras imported 168.2 thousand tons of rice, marking a 2.8% increase from the previous year. Over the 2017-2020 period, imports grew by 11.4%, with an average annual growth rate of 3.7%. The highest import volume was recorded in 2018 at 198.4 thousand tons, which also saw the largest increase of 31.4%. The largest decline occurred in 2019 at 17.6%.

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

Between 2017 and 2020, virtually all rice imports to Honduras in volume terms came from the United States, which accounted for 92.5% of total flows.

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

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

Imports in value, K $ US

In 2020, Honduras's rice imports amounted to 67 868 thousand US dollars, up 19.0% from 2019. Over the 2017-2020 period, import value increased by 34.3%, with an average annual growth rate of 10.3%. The maximum value was recorded in 2018 at 68 873 thousand US dollars, which also experienced the largest increase of 36.2%. The largest decline occurred in 2019 at 17.2%.

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

From 2017 to 2020, the United States accounted for 88.8% of total rice import value to Honduras, with the balance distributed among a wide range of smaller destinations.

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

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