Agriculture

Italian rice faces difficulties due to drought and subsidised imports from South-East Asia

The Risò event is taking place in Vercelli from today until Sunday. Production has started early due to the heat, but the area under cultivation is 1,200 hectares smaller than usual. Bobba (Ente Risi): strengthening supply chain contracts

 (AdobeStock)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

An industry up in arms. The sector on display at Risò, the international rice fair taking place from tomorrow until Sunday in Vercelli (with Prime Minister Giorgia Meloni also expected to attend), is facing difficulties. It is a sector caught between climate emergencies and a surge in imports from South-East Asian countries.

On the one hand, a crop that grows and matures in water is bound to suffer at the end of a hot, dry summer such as that of 2026. On the other hand, the threats to Italian rice (a premium product in which Italia is the European leader) also stem from imports from South-East Asia at reduced tariffs, which are driving down prices and causing difficulties for producers.

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“This year, Italian rice has faced every possible challenge,” begins Natalia Bobba, president of Ente Risi. “The market has not been favourable, with farmers in some sectors finding themselves forced to sell below cost. On top of that, there were difficulties linked to the water shortage, which was managed as best as possible but still caused damage in some areas. The snow melted too early this year due to the high temperatures in May and June, which depleted the reserves that normally guarantee water for the rice paddies throughout the summer. Instead, due to the extremely high temperatures, many producers have had to bring forward the harvest. Harvesting has already begun in several areas, whereas it usually starts around 20 September.”

On the subject of climate change, a meeting organised by Ismea will be held during the Risò event, focusing on ‘Tools and prospects for risk prevention and management in the rice supply chain’, at which the new ‘simplified rice insurance policy’ will be presented.

However, the key issues will be those relating to the market, particularly the international market. “The thorn in the side of the sector,” continues the president of Ente Risi, “is imports subject to zero tariffs under the EBA scheme – in particular from Cambodia and Myanmar – which end up influencing our market. Of course, conditions may change. The sharp rise in freight costs could slow down those trade flows, as could the effects of El Niño, which is hampering our production but could also affect that of others. The issue of the European safeguard clause remains. This is a tool that can curb unrestricted imports. It was introduced by Brussels and was an important development for us; however, the threshold required to trigger it has been set too high: in fact, it requires a 45 per cent increase in imports from abroad (compared to the average). We had asked for it to be set at 20 per cent.”

As far as Italian production is concerned, the initial reports coming in from the regions appear positive despite the water stress. “Production will certainly be down,” continues Bobba, “given that we have recorded a reduction in the area under rice cultivation of around 1,200 hectares. The season is also weighed down by uncertainties regarding production costs, with rising prices for diesel and natural gas, which are used not only to transport the harvest but also to dry the rice. As the Rice Authority, we are working to facilitate dialogue between the parties – producers on the one hand and the processing industry on the other. In our view, a significant increase in supply chain contracts within the sector – which currently cover just 2.5 per cent of production – would be desirable. Such contracts could represent an opportunity to guarantee fair remuneration for producers and security of supply for processors.”

Average Italian rice production stands at around 1.4 million tonnes of paddy rice, or unhusked rice. There are around 3,500 producers and 95 processing plants, with turnover varying considerably. ‘Two years ago,’ concludes Bobba, ‘when rice was selling at 60 euros per quintal, we reached a production value of 750 million. Today, we are at roughly half that figure.’

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