Mexico Rice Market - Growth, Trends and Forecast (2020 - 2025)

A continuous increase in production is noticed for the last few years at an average rate of 10000 - 15000 metric tonnes per year. The main reason for the increase in rice production every year is the support from the Mexican government and encouragement from the Mexican Rice Council. Mexican government provides generous subsidies to rice farmers through price guarantees, input and credit subsidies. In addition to direct support, the government also started import duties on rice to increase domestic production. The demand for rice is also one of the market drivers in Mexico. It has almost doubled the domestic produced rice in 2018.

Mexico primarily depends on rice imports because of its low domestic production. The country imported 1 million metric tons of rice in 2018, which is worth a value of USD 386 million. The United States is the major supplier of rice to Mexico, with 70% of the total rice volume imported by Mexico, followed by the South American countries like Uruguay and Argentina. Importing from Asian countries is very low due to the phytosanitary restrictions imposed by the Mexican government on the imports of Asian rice.