US rice market faces competition from rising Thai rice imports

Concerns are escalating among US market participants regarding the rising imports of rice into the United States, which may be exerting downward pressure on the domestic rice market, sources told Platts, part of S&P Global Commodity Insights. The US has been steadily increasing its rice imports year on year, with 1.4 million mt imported in 2024, reflecting a 7% increase from the previous year. Notably, Thailand has continued to be the largest supplier of rice to the US, exporting 786,582 mt of milled rice, an increase from 729,982 mt in 2023.

In the domestic market, Thai Jasmine rice commands a higher price compared to US-grown Jasmine rice. Despite the price difference, consumers continue to favor Thai rice, perceiving it as a premium product. "The majority of consumers do not realize why Thai rice is different (aroma), only that it is the 'cool' thing to do," remarked a source based in the US. Currently, Thai Jasmine rice is valued at approximately $1.60/lb, while US-grown Jasmine rice is priced at around $1.20/lb.

The surge in rice imports has drawn the ire of some members of Congress, who have urged President Trump to impose higher tariffs on imported rice to enhance competitiveness for US-grown varieties. At present, the US does not have any import tariffs in place, only requiring that imported rice be milled.

On Feb. 13, Congress members Clay Higgins and Julia Letlow penned a letter to President Trump expressing their concerns about the situation. They highlighted that the agricultural industry is being "displaced by heavily subsidized rice from India, Thailand, Vietnam, China, and Pakistan." The Congress members advocated for tariffs of "up to 100% on all Indian, Thai, Chinese, Pakistani, and Vietnamese rice imports to create a level playing field for US rice farmers and producers."

The global rice market's lower prices have also contributed to downward pressure on the US rice market. As of Feb. 20, Platts assessed US Long Grain #2, 4% broken rice at $659/mt FOB NOLA down $141/mt on year.

Johnny Sulivan, VP of Sales and Marketing at Producers Rice Mill, expressed concern, stating, "It is certainly alarming that the volume consistently grows and has for some time." He added, "I do not know that the lower Thai prices will have any additional effect; consumers seem willing to pay the price, so it's highly likely any margin increases will remain with the importers, not be passed along to the market." This sentiment was echoed by a rice trader who noted that "demand is unlikely to be impacted much even if the US administration imposes an import duty."

Meanwhile, there is an ongoing initiative in the domestic market to promote newer and better US-grown Jasmine rice varieties. However, this effort does not appear to be gaining much traction among consumers.