Semi-milled or wholly milled rice market in Sri Lanka

Earlier Report Observations

The semi-milled or wholly milled rice market in Sri Lanka expanded from 2.6 million metric tons in 2018 to over 3.1 million metric tons in 2020. This growth was supported by government interventions, including a rise in the guaranteed paddy price to Rs. 50 per kg in 2019 to encourage farmer production and the involvement of the Paddy Marketing Board in market stabilization. Furthermore, a 2020 prohibition on using rice for animal feed redirected more supply toward human consumption, increasing available market volume.

Market volume reached a peak of 3.3 million metric tons in 2021 but contracted sharply to 2.8 million metric tons in 2022. The decline was primarily driven by a nationwide fertilizer shortage that severely reduced paddy yields and domestic rice production. Anti-competitive practices by large millers with significant storage power disrupted the supply chain, and approximately 75% of small-scale rice millers ceased operations, drastically reducing industry milling capacity.

In 2023, the market volume stabilized at 2.8 million metric tons. Domestic rice production recovered significantly from the previous year's low, despite rising costs for raw materials such as packing supplies. Some major mill owners vertically integrated by manufacturing their own packing materials to manage expenses, and the government permitted price increases for various milled rice varieties, contributing to market balance.

Production semi-milled or wholly milled rice in Sri Lanka

In kind, 2017-2020, K t

From 2017 to 2020, Sri Lanka ranked 16th globally in production volume of semi-milled or wholly milled rice.

Top producers of semi-milled or wholly milled rice, 2017-2020

World map of production of semi-milled or wholly milled rice, 2017-2020

Sri Lanka's production of semi-milled or wholly milled rice grew for the third consecutive year. In 2020, the country produced 3 106 thousand tonnes, marking a 9.3% year-on-year increase. Over the 2017-2020 period, production rose by 110.9%, with a compound annual growth rate of 28.2%.

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

In value, 2017-2020, M $ US

Sri Lanka's production of semi-milled or wholly milled rice increased for the third year in a row. In 2020, the output was valued at 2 844 million US dollars, up 6.2% compared to the previous year. Between 2017 and 2020, production grew by 89.9%, equivalent to an annualized rate of 23.8%.

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

Exports semi-milled or wholly milled rice from Sri Lanka

Exports in kind, K t

Sri Lanka's exports of semi-milled or wholly milled rice rose for the third consecutive year. In 2020, the country exported 7.9 thousand tonnes, representing an 88.2% surge from 2019. Over the 2017-2020 period, exports increased by 124.4%, with a compound annual growth rate of 30.9%.

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

From 2017 to 2020, Sri Lanka's exports of semi-milled or wholly milled rice were not heavily concentrated. Canada accounted for 15.1% of exports, the United Kingdom for 14.8%, and the United Arab Emirates for 14.4%, with these three countries together making up 44.2% of total flows.

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

There were notable fluctuations in market performance during this period. The largest decline occurred in 2019, at 11.0%. In 2020, Sri Lanka exported 7.2 million US dollars of semi-milled or wholly milled rice, an 82.8% jump from 2019. From 2017 to 2020, the peak-to-trough amplitude was 2 times.

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

Between 2017 and 2020, the United Arab Emirates accounted for 14.3% of exports in value terms, Australia for 14.0%, and the United Kingdom for 13.4%. However, even combined, these three largest buyers represented just 41.7% of total exports, indicating a broadly diversified partner base.

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 semi-milled or wholly milled rice to Sri Lanka

Imports in kind, K t

Sri Lanka's imports of semi-milled or wholly milled rice fell for the third consecutive year. In 2020, imports totaled approximately 15.7 thousand tonnes, a sharp 34.2% drop from the previous year. Over the 2017-2020 period, imports decreased by 97.6%, with a compound annual growth rate of -71.3%.

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

Throughout 2017-2020, India and Myanmar were the main sources for imports, jointly accounting for 83.3% of total flows, while other partners held significantly smaller shares.

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

Sri Lanka's imports of semi-milled or wholly milled rice declined for the third year in a row. In 2020, imports amounted to 10.4 million US dollars, a substantial 18.0% decrease from the previous year. Over the 2017-2020 period, imports dropped by 96.2%, with a compound annual growth rate of -66.3%.

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

From 2017 to 2020, India and Pakistan together made up 82.4% of total imports in value terms, with other countries forming a diversified but less significant portion.

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

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