4,200 Thousand Tonnes: China is the Largest Importer of Rice in the World

Rice is one of the most widely consumed staple foods in the world, especially in Asia and Africa. According to the Food and Agriculture Organization (FAO), rice provides 19% of global human per capita energy and 13% of per capita protein. However, not all countries produce enough rice to meet their domestic demand, and some rely heavily on imports from other countries.

In this article, we will explore which country is the largest importer of rice in the world, why it imports so much rice, where it imports rice from, and what are the implications of its rice trade for the global market and food security.

China: The World’s Top Rice Importer

According to Knoema, an online data platform, China is the top country by rice imports quantity in the world. As of 2020, rice imports quantity in China was 4,200 thousand tonnes that accounts for 9.65% of the world’s rice imports quantity . This is a significant increase from 2019, when China imported 3,500 thousand tonnes of rice .

China is also the world’s largest producer and consumer of rice. According to the United States Department of Agriculture (USDA), China produced 148.5 million tonnes of milled rice in 2020/21, accounting for 30% of global production . China also consumed 144.8 million tonnes of milled rice in 2020/21, accounting for 28% of global consumption .

So why does China import so much rice if it already produces and consumes more than any other country? There are several reasons for this:

Diversifying supply sources and varieties

China imports different types of rice from different countries to meet the diverse preferences and needs of its consumers. For example, China imports fragrant rice from Thailand and Vietnam, sticky rice from Laos and Cambodia, basmati rice from Pakistan and India, and japonica rice from Japan and South Korea . China also imports some high-quality rice for special occasions or as gifts .

Maintaining strategic reserves

China imports rice to replenish its national reserves, which are used to stabilize domestic prices and ensure food security in times of crisis. According to Reuters, China has a target to keep at least 100 days of rice consumption in its reserves . However, the exact size and composition of China’s rice reserves are not publicly disclosed .

Supporting regional trade and cooperation

China imports rice from its neighboring countries as part of its economic and diplomatic relations. For example, China has signed free trade agreements (FTAs) with ASEAN countries (including Thailand, Vietnam, Cambodia, Laos, and Myanmar), Pakistan, and South Korea, which allow preferential tariffs for rice imports . China also provides aid and investment to some of its rice suppliers, such as Cambodia and Laos .

Implications of China’s Rice Imports for the Global Market and Food Security

China’s rice imports have significant implications for the global market and food security. On one hand, China’s rising demand for imported rice provides opportunities for other rice-producing countries to expand their exports and increase their incomes. According to World’s Top Exports, global demand for imported rice resulted in US$31 billion worth of sales in 2020 . The top five suppliers of rice to China in 2020 were India, Pakistan, Vietnam, Thailand, and Myanmar, which together accounted for 94% of China’s rice imports value .

On the other hand, China’s large-scale rice imports also pose challenges for the global market and food security. For instance:

Price volatility

China’s rice imports can affect the global supply and demand balance and cause price fluctuations in the international market. For example, in 2020, when China increased its rice imports due to COVID-19 pandemic and floods that damaged its domestic crops, global rice prices rose to their highest levels since 2011 .

Quality standards

China has strict quality standards and inspection procedures for imported rice, which can create barriers for some exporters. For example, in 2019, China suspended rice imports from India due to the detection of pests in some shipments . China also requires exporters to register their rice mills and obtain phytosanitary certificates from its authorities .

Food security risks

China’s dependence on imported rice may expose it to food security risks, such as supply disruptions, trade disputes, or geopolitical conflicts. For example, in 2020, China and India engaged in a border clash that strained their bilateral relations and threatened their rice trade . China also faces potential sanctions from the United States and its allies over its human rights violations and territorial claims, which could affect its access to global markets .

The Global Rice Trade: Trends and Insights

Rice is one of the most widely consumed staple foods in the world, especially in Asia and Africa. According to the Food and Agriculture Organization (FAO), the global rice production reached 769.7 million tonnes in 2020, with Asia accounting for 90% of the total. However, not all countries produce enough rice to meet their domestic demand, and some rely heavily on imports to satisfy their consumption needs. In this blog post, we will look at some of the trends and insights of the global rice trade, based on the latest data available.

Who are the largest rice importers in the world?

According to Knoema, China was the top country by rice imports quantity in 2020, with 4.2 million tonnes, followed by Nigeria with 3.4 million tonnes, and Iran with 2.9 million tonnes. These three countries alone accounted for 23.5% of the world’s rice imports quantity in 2020. Other major rice importers include Saudi Arabia, Philippines, Iraq, Indonesia, Ivory Coast, United Arab Emirates, and Japan.

Why do these countries import rice?

There are various reasons why these countries import rice, such as insufficient domestic production, population growth, changing consumer preferences, food security policies, and price fluctuations. For example, China imports rice mainly to diversify its supply sources and ensure food security, as well as to meet the demand for high-quality rice from its urban consumers. Nigeria imports rice to fill the gap between its domestic production and consumption, which is driven by its large and growing population and urbanization. Iran imports rice to supplement its domestic production, which is affected by water scarcity and climate change, as well as to satisfy its consumers’ preference for aromatic basmati rice from India and Pakistan.

Who are the largest rice exporters in the world?

According to World’s Top Exports, India was the largest exporter of rice in 2020, with $7.1 billion worth of sales, followed by Thailand with $5.7 billion, Vietnam with $3.1 billion, Pakistan with $2.2 billion, and China with $1.9 billion. These five countries accounted for 68.6% of the total value of rice exports in 2020. Other significant rice exporters include United States of America, Myanmar, Cambodia, Brazil, and Italy.

What are the main types of rice traded in the world?

There are many varieties of rice grown and traded in the world, but they can be broadly classified into three main types: indica, japonica, and aromatic. Indica rice is long-grained and non-sticky when cooked, and it is mainly grown in tropical and subtropical regions. Japonica rice is short-grained and sticky when cooked, and it is mainly grown in temperate regions. Aromatic rice is a type of indica or japonica rice that has a distinctive fragrance and flavor when cooked, such as basmati, jasmine, or glutinous rice.

What are the main challenges and opportunities for the global rice trade?

The global rice trade faces several challenges and opportunities in the coming years, such as climate change, technological innovation, trade policies, consumer preferences, and market integration. Climate change poses a threat to the sustainability and resilience of rice production and consumption systems, as it can affect the availability of water, land, and inputs, as well as the occurrence of pests and diseases. Technological innovation offers a potential solution to enhance productivity, quality, efficiency, and traceability of rice along the value chain, as well as to reduce environmental impacts and post-harvest losses. Trade policies can have a significant impact on the competitiveness and stability of the global rice market, as they can affect tariffs, quotas, subsidies, standards, and regulations. Consumer preferences can influence the demand for different types of rice in different regions and segments of the market, as well as the willingness to pay for attributes such as origin, quality, safety, and sustainability. Market integration can facilitate the flow of information, capital, and goods across borders, as well as promote cooperation and coordination among stakeholders.

References:

https://www.llv.li/files/as/liechtenstein_in_figures_2020.pdf

https://tcdata360.worldbank.org/countries/KSV?indicator=1541&countries=BRA&viz=line_chart&years=1970,2019&country=KSV

https://www.worldstopexports.com/rice-imports-by-country/
https://knoema.com/atlas/topics/Agriculture/Trade-Import-Quantity/Rice-imports-quantity
https://worldpopulationreview.com/country-rankings/rice-production-by-country
https://recentlyheard.com/2021/01/20/top-10-rice-importing-countries-in-the-world/