Italian rice markets under pressure as production declines

The Italian Indica and Arborio rice markets are experiencing supply pressures, driven by a decline in production for the 2023-24 marketing year, despite an increase in cultivated area.

Platts reported prices for Indica 5% WR at Eur850/mt and Arborio 5% WR at Eur1,750/mt ex-works Jan. 24.

The recent harvest was disappointing due to poor paddy quality, which is causing challenges for millers, an Italian trader said. The average milling yields have dropped from the previous season, particularly impacting risotto varieties and contributing to rising ex-works prices.

Italy's total production dropped despite a 7.5% increase in surface area from the prior season, according to the National Rice Agency, operating under the Ministry of Agriculture, Food Sovereignty and Forestry. This decline was largely attributed to adverse weather conditions, including heavy rains during both the planting and late harvest periods.

The situation is further exacerbated when considering milled rice, where availability is even more limited.

Prices in Italy are unlikely to decrease and are expected to rise amid declines in production and surface area, according to another source within the rice industry. Arborio and similar varieties have seen a decrease of 18.68% in area and approximately 28% in production, while Long Grain B Indica has experienced a 9.15% reduction in area and about a 14% drop in production.