Rome: International rice prices experienced a 2.5 percent decrease in October, exceeding the 2.1 percent drop in global food prices, as reported by the Food and Agriculture Organisation of the United Nations (FAO). The FAO released a statement indicating that the FAO Food Price Index averaged 126.4 points in October, marking a decline of 2.1 points from the revised September figure of 128.5 points.
According to Agence Kampuchea Presse, the reduction in rice prices was attributed to increased market competition and the commencement of main-crop harvests in several northern hemisphere exporting countries. For the 2025-26 marketing year, the FAO forecasted a 2.2 percent rise in global rice stocks, reaching a record high of 215.4 million tonnes, despite a projected 1.2 percent decline in global rice trade to 61.1 million tonnes.
The Agricultural Market Information System (AMIS), hosted by the FAO, separately announced that the rice production outlook for 2025/26 remained largely unchanged from September. Slight upward revisions for Cambodia, South Korea, and Sri Lanka were offset by downgrades for Mali and Vietnam. Rice utilisation for the year was upgraded due to increased food use expectations in various African countries, as noted in the monthly AMIS Market Monitor.
The AMIS report highlighted several factors contributing to the downward pressure on rice prices in October. The report stated that weak sentiment persisted in the international rice market due to limited demand from key destinations and seasonal pressure in some Asian exporters.
The International Grains Council's rice sub-index of the Grains and Oilseeds Index revealed that average rice quotations fell to their lowest level since 2017. In Thailand, traders reduced their offers to stimulate sales ahead of the main season crop arrivals. Indian white rice offers also decreased amid weak demand, though sales to Bangladesh provided some support to parboiled prices. New crop arrivals pressured prices in Pakistan, while an ongoing import ban in the Philippines continued to affect sentiment in Vietnam.