Rice market in Madagascar

Earlier Report Observations

After a dip in 2019, Madagascar's rice market volume began a sustained growth phase from 2020, reaching over 5.6 million tons by 2022. This expansion was primarily fueled by concerted state interventions to bridge the gap between local production and consumption. In 2021, the state procurement agency SPM imported 500 000 tons of rice, with private sector imports adding to this volume, directly injecting supply into the market to stabilize prices and meet demand.

Local production capacity increased significantly from 2021 onward, aided by the introduction of hybrid rice varieties. A key development in 2022 was the entry of company Stoi into the market, which promoted hybrid rice by providing inputs, technical support to farmers, and committing to purchase 80% of their harvest. These efforts, alongside improved farming techniques and seeds, contributed to a 9% rise in local production by 2023, which allowed for a reduction in import dependency that year.

International supply chain disruptions and export restrictions from major producers like India influenced prices and availability throughout the period. In response, the Malagasy government implemented price control measures and continued to manage imports. By 2023, the market volume stabilized at 5.5 million tons, reflecting a balance between enhanced domestic output and managed external supply.

Production rice in Madagascar

In kind, 2017-2020, K t

Madagascar ranked 19th globally in rice production from 2017 to 2020.

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

In 2020, Madagascar produced 4 228 K t of rice, marking an 8.1% year-over-year increase. Over the 2017-2020 period, production grew by 17.4%, with a compound annual growth rate of 5.5%. The largest decline occurred in 2019 at 3.0%, while the highest increase was recorded in 2018 at 11.9%.

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

Exports rice from Madagascar

Exports in kind, K t

Market performance showed noticeable fluctuations during this period. The highest export volume was recorded in 2017, while the lowest occurred in 2018, resulting in a peak-to-trough ratio of 23 times. In 2020, Madagascar exported 0.0 K t of rice, representing a gradual 7.7% decrease compared to 2019. The minimum value was 0.0 K t in 2018, with the largest decline that year at 95.7%. The largest increase was recorded in 2019 at 127.0%.

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

From 2017 to 2020, the United States was the dominant buyer of rice from Madagascar, accounting for 74.9% of total exports in kind, while other countries shared the remaining volume.

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

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

Exports in value, M $ US

The market exhibited volatility over the observed period. Export volumes peaked in 2017 and declined to their lowest level in 2019, with a top-to-bottom ratio of 21 times. In 2020, Madagascar's rice export volume totaled 0.0 M $ US, up 49.6% compared to 2019. The minimum value was recorded in 2019 at 0.0 M $ US, with the largest decline in 2018 at 95.1%.

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

Between 2017 and 2020, the United States accounted for 80.6% of total rice exports from Madagascar in value terms, with the remaining flows distributed among multiple smaller partners.

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

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

Imports rice to Madagascar

Imports in kind, K t

In 2020, Madagascar's rice import volumes amounted to 479.4 K t, reflecting a solid 17.7% year-over-year improvement. Over the 2017-2020 period, imports decreased by 19.6%, with a compound annual growth rate of 7.0%. The minimum value was recorded in 2019 at 407.1 K t, while the maximum was in 2018 at 609.6 K t. The largest decline occurred in 2019 at 33.2%.

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

From 2017 to 2020, Pakistan (32.1% of imports in kind), India (30.3% of imports in kind), and Myanmar (20.6% of imports in kind) together accounted for 83.0% of total imports in kind, remaining the main sources of rice for Madagascar.

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

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

Imports in value, M $ US

After a two-year decrease, foreign rice supplies to Madagascar increased. In 2020, Madagascar imported 179.1 M $ US of rice, reflecting a solid 23.3% gain compared to the previous year. Between 2017 and 2020, imports decreased by 28.6%, equating to an annualized rate of 10.6%. The minimum value was recorded in 2019 at 145.2 M $ US, with the largest decline that year at 40.8%.

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

From 2017 to 2020, Pakistan (32.2% of imports in value terms), India (30.5% of imports in value terms), and Myanmar (18.7% of imports in value terms) continued to lead as suppliers of rice to Madagascar, jointly accounting for 81.4% of total imports in value terms.

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

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