Everything You Need to Know About Wholesale Rice for Your Safe Investment

Rice has always been one of the most fundamental staple foods for people all over the world. As a direct consequence of this, the market for wholesale rice has developed into a highly profitable wholesale market. In order to ensure that you make a profit from this product line, Viet Agri Wholesale will provide you with information that is both comprehensive and helpful regarding wholesale rice.

1. The investment opportunities available in the wholesale rice market

Rice is the food source that is most essential and cannot be substituted, which explains why its consumption has never decreased.

• Additionally, as a result of an expanding global population, there is a growing requirement for an ever-increasing supply of food. In many nations around the world, the wholesale rice market is still a market with a great deal of untapped potential.
• In comparison to other industries, the wholesale rice market will not be significantly impacted even if the global pandemic caused by COVID-19 takes place.
• In recent years, the annual wholesale production of rice around the world has averaged somewhere around 600 million tons equivalent.

As a result of an increase in the quantity of rice exported from countries around the world from one year to the next, it is clear that the wholesale rice market is extremely active.

• Because there is an ever-increasing demand for rice in the developing and emerging nations of the world, it will continue to see a significant increase in the coming years.
• North America and Europe in particular are currently importing record quantities of rice, and it is anticipated that both regions will continue to consume more rice in the years to come, despite the fact that neither is a significant consumer of rice.

2. Compare the prices of wholesale rice in the countries that are the world’s largest rice exporters.

Since the most recent price adjustment, wholesale prices of rice have increased significantly.

• This is because there is a tight supply while demand for rice continues to rise on a daily basis. The Thai Rice Exporters Association has provided Viet Agri Wholesale with wholesale rice prices in the world’s largest countries as of November 2022. These prices will be provided to you by Viet Agri Wholesale.

According to the price list, we can see that the wholesale price of rice in various countries all over the world varies.

• These variations are due to the fact that there are many different types of rice. In spite of the fact that the Indian government has placed restrictions on exporting India’s 5% Indica rice, the price of this variety of rice has consistently been among the lowest of all rice-exporting nations.
• The primary reason for this is that there is a significantly greater quantity of rice available for wholesale purchase in India compared to other countries.
• The high quality and scrumptious flavor of Indian basmati rice has long been a favorite among a significant number of people all over the world. Basmati rice prices were unaffected by the export ban and continued to be the highest in other countries, despite the fact that Indian rice prices dropped by 5% as a result of the ban.

See more: Rice Wholesale Suppliers

• The wholesale price of Vietnamese rice continues to be at the top of the market when compared to the prices of Indica rice and japonica rice.
• The fact that rice produced in Vietnam is competitive enough to sell in high-end markets like Europe and Japan is a testament to the high standard of rice produced in this country.

3. Factors that influence the prices of wholesale rice

Rice’s price at the wholesale market is notorious for being highly volatile on a daily basis. Let’s investigate, with the help of Viet Agri Wholesale, the primary factors that contribute to shifts in the prices of wholesale rice.

3.1. A discussion of the factors that influence the price wholesale price

Because the total amount of rice produced in each nation varies, the price at the wholesale rice markets in each nation does not remain consistent. One could say that the cost of exporting rice from India is lower than the cost of exporting rice from other countries. Rice exports from India equal the combined volume of those from the next three largest rice exporting countries, which are Thailand, Vietnam, and Pakistan. India is the world’s largest exporter of rice.

3.2 The rice wholesale price is impacted by the economic principle of supply and demand.

The market economy functions in accordance with the universal law of supply and demand, which applies to all different kinds of industries. And the same holds true in the field of wholesale rice; wherever there is a demand, there will also be a new supply.

• Rice is in higher demand than ever before, but there is not enough supply to meet that demand. Now, countries that utilized to import rice from India will transition to importing rice from other countries, which will lead to an increase in the price of rice produced in those countries.
• Due to a lack of precipitation in certain regions, such as West Bengal and Uttar Pradesh, India’s total rice acreage decreased by 13% during the previous season. This resulted in a decrease in the country’s overall rice production.
• When the world’s largest rice exporter introduced a ban on rice exports, it caused the price of Indian rice exports to skyrocket. India is the world’s largest exporter of rice, so this caused the price of Indian rice exports to skyrocket.

3.3 The wholesale price of rice is influenced by government policy.

The policies of those countries will have a significant impact on the majority of wholesale rice prices. Especially when it is a nation that occupies a significant position in the international community.

• To begin, the government has a policy in place to protect the nation’s supply of food in the event that there is a higher demand than there is available supply. For instance, the price of rice increased in many countries after India placed restrictions on the country’s rice exports.
• When it comes to exports of wholesale rice, the government places quotas on the total amount of rice that can leave the country in order to protect the domestic rice market.
• The imposition of tariffs on rice imports by the government is yet another strategy that can be utilized to safeguard the domestic rice industry.
• The government came to the conclusion that entering into both bilateral and multilateral trade agreements would provide the best opportunity to benefit from preferential tariff treatment. After three to five years, in accordance with the commitment made in the EVFTA Agreement, the EU will give Vietnam a quota of 80,000 tons of rice per year and will impose no tax on the rice at all.