In this list

UK agrees to remove all barriers on Australian short and medium grain rice

Agriculture | Grains | Energy | Coal | Thermal Coal | LNG | Natural Gas | Oil | Crude Oil | Refined Products | Naphtha | Metals | Steel | Steel Raw Materials

Market Movers Asia, March 27-31: South Korea eyes oil supply security, China could see improvement in steel demand

Agriculture | Biofuels

Platts Biofuels Alert

Energy | Oil | Energy Transition

APPEC 2023

Agriculture | Energy | Energy Transition | Oil | Electric Power | Natural Gas | Biofuels | Renewables | Refined Products | Jet Fuel | Hydrogen | Electricity

INTERVIEW: UK's LCCC anticipates AR5 process improvements, new CFD markets

Energy | Coal | Energy Transition | Thermal Coal | Renewables | Coking Coal

China's hunger for coal sparks debate on self-sufficiency and imports

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

UK agrees to remove all barriers on Australian short and medium grain rice


UK secures trade agreement with Australia June 15

Tariffs expected to be lifted immediately after ratification

Australia's exportable surplus remains limited following harvest

  • Author
  • Peter Storey
  • Editor
  • Agamoni Ghosh
  • Commodity
  • Agriculture

The UK-Australia free trade agreement announced June 15 will lead to the total and immediate removal of UK tariffs on Australian short and medium grain rice following ratification.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Australia's de facto sole rice marketer – SunRice – hailed the agreement as "a landmark access outcome for Australian rice growers," in a press release statement.

While the full text of the deal has not yet been released, the UK government released an agreement in principle document June 17 which stated that "there will be a permanent duty-free quota of 1,000 tonnes per year for long-grain milled rice, with tariff elimination...for short and medium-grain milled rice."

Australian production primarily focuses on short and medium grain Japonica rice varieties in New South Wales, with only a small amount of long grain produced, primarily in Queensland.

At present, a UK country specific rice quota for only 779 mt of Australian rice exists, after which tariffs kick in which SunRice labelled as "incredibly prohibitive."

SunRice's chairman was quoted as saying that the deal "is the most significant market access outcome for Australian rice exports in any of the recent Free Trade Agreements that the Government has delivered."

The deal coincides with the recent conclusion of Australia's rice harvest. While 2021 production increased by 800% on year to 458,000 mt according to the Australian Bureau of Agricultural and Resource Economics and Sciences, supplies remain tight following two years of drought-affected output.

This has been reflected in recent East Asian tenders. While Japan, South Korea and Taiwan have all held Australia-specific rice tenders in the past two months totaling tens of thousands of tons, a total of 20 mt were sold in these tenders. Sun Rice confirmed to S&P Global Platts in May that "limited volumes" are available for tender sales this year and only "if prices are high enough."

In this context, it is unlikely that Australia will be exporting significant volumes of rice to the UK later this year, if and when the trade deal is ratified by both signatories. However, if improved Australian production is sustained in 2022, significant exports will be possible, potentially threatening the market share held by Southern European and Californian exporters.

The UK is Europe's largest rice importer, primarily purchasing long grain rice from Asia. The US Department of Agriculture has projected that the country will import 660,000 mt of rice (milled equivalent) in the 2021-22 marketing year (September-August).