The first four months of the year has seen the average export price of rice reach US$470.2 per tonne, representing an increase of 10% over the same period from last year and the highest level over the course of the past two years.

According to the Agro Processing and Market Development Authority, May alone saw rice exports reach 789,000 tonnes with a value of approximately US$415 million, raising the total volume to nearly 2.9 million tonnes with an export value worth US$1.41 billion. This marks a 5.1% increase in terms of volume and a 18.9% rise in value, in comparison with the same period from last year.

During the course of opening four months of the year, the Philippines has led the way in terms of being the country’s largest rice export market, holding a market share of 40.5%, with its overall volume reaching over 902,000 tonnes, equivalent to US$401.3 million.

Most notably, other export markets that have enjoyed strong growth include China and Indonesia, both of which have seen a 2.7-fold increase, Taiwan (China) which has increased by 67.9%, and Ghana, up 39.3%.

Last year’s figures saw the price of rice in the nation range from US$376 to US$420 per tonne while the 2018 figure was between US$380 to US$502 per tonne.

With regard to the current global market, the export price of Indian rice has hit a record high during this year due to growing demand from African and Asian nations. Moreover, the price of Thai rice has suffered a fall over the course of the previous month due to increasing supply and fierce competition from cheaper suppliers such as India and Vietnam.

The Agro Processing and Market Development Authority forecasts that global demand for rice will increase, with the Philippines seeking to import an additional 300,000 tonnes of rice in an effort to strengthen Government reserves and to prepare for the low-supply season that may occur during the third quarter.

The latest forecast issued by the US Department of Agriculture indicates that the world's rice production for the year is estimated to be at 493.8 million tonnes, down by 0.5% from last year’s figures. Furthermore, this year’s global rice consumption is expected to reach 490.2 million tonnes, an increase of 0.9% from last year.