Global rice prices surge 11% amid strong demand and shifting export policies

Global rice prices rose by 11.1% as of mid-February 2026, diverging sharply from trends in other agricultural commodities such as corn and sugar, which remain under pressure from oversupply. The rally reflects significant shifts in the global supply-demand balance, as rice remains a staple food for more than half of the world’s population. The increase has already affected international trade flows and raised concerns about food security in major importing countries.

A key driver behind the price surge was the recovery in demand following India’s decision to lift export restrictions in late 2025. Despite expectations that increased supply would push prices lower, importers across Africa and the Middle East rushed to replenish depleted inventories, creating logistical bottlenecks and driving prices higher. Seasonal demand ahead of Ramadan and the Lunar New Year in Asian countries provided additional support to the market.

The situation was further complicated by domestic disruptions in Japan, where retail rice prices nearly doubled due to delays in releasing government stockpiles and rigid pricing policies by agricultural cooperatives. This triggered stockpiling by consumers and strengthened bullish sentiment among global traders, who began anticipating further supply risks. As a result, even India’s record rice production of 152 million tons was not sufficient to fully satisfy global demand.

Asian exporters and major rice processing and trading companies emerged as the primary beneficiaries of the rally, gaining stronger export margins amid higher prices and increased sales volumes. At the same time, global food manufacturers are facing rising raw material costs, which could translate into higher prices for rice-based food products. Analysts warn that if current price levels persist, consumers may soon see price increases across a range of processed foods.

Market participants expect future price movements to depend on how quickly demand from key importing nations is met and on crop performance in major producing countries. Climate risks and ongoing diversification of sourcing strategies by large importers could keep prices elevated throughout 2026. This trend highlights a structural shift in global agricultural markets, with rice increasingly showing independent price dynamics compared to other major grains.

Tags: prices, rice