European rice at risk of decline: 60% of consumption from imports. Airi: more protection needed
These days in Brussels a decision on the system of preferential tariffs on arrivals from South East Asia. Rice industries: the already processed product costs the same as the raw product in the EU
Facilitated (and cheap) imports, global surpluses, together with the devaluation of the dollar, reduced freight rates and the impact of the climate crisis on producers are putting a strain on the resilience of the Italian rice supply chain.
The latest alarm for a concomitance of factors "that are not manageable by the supply chain" comes from Airi, the Association of Rice Industries, which for some years now, after the expiry of the European safeguard clause that Italy had painstakingly managed to activate in Brussels, has been facing the resumption of zero tariffs imports from large producers, which has come to cover over 60% of total European purchases.
EU decision in sight
Rice largely ready-packed and packaged, sold at unaffordable prices for continental producers: today, via Rotterdam, white milled rice arrives at 400 euros per tonne; competing European varieties cost at least twice as much, 800-1,000 euros. In Italy, 400 euros buys a tonne of paddy rice, an agricultural raw material that then has to be transported, stored, processed and packaged.
"There is no need to complain but to identify those responsible, the decline will be slow but must be stopped now," says Mario Francese, president of Airi and a leading figure in the sector (he is also ceo of Euricom and president of Curti). He has just signed a letter to the Italian MEPs of the Inta (International Trade) Commission, which meets on Monday 26 January and will have to vote on the reform of the called Generalised System of Preferences, the European tariffs concessions that guarantee duty-free imports to less advanced countries, including Cambodia and Myanmar. A crucial dossier for a sector that, despite the difficulties mentioned, has great potential.
Rise in consumption
"In Europe consumption has grown by 20% in the last ten years from 2.1 to 2.6 million tonnes, in Italy even more, from just over 300 to the current 450 thousand tonnes. Rice is attracting more and more consumers because it is a light and highly digestible product, plus derivative products such asrice-based cakes for their health-promoting properties are gaining ground. We therefore combine geopolitical factors such as the growth of North African and Asian migrants who are big rice consumers with marketing factors. This mix,' continues Francese, 'is the basis for significant growth. The weak point is that over 60% of European consumption is covered by imports, with 1.6 million tonnes. And of this 60% (one million tonnes) is at zero tariffs'.

