Rice

• Author: Edwin Laurent
• Pages: 70-75

70 Understanding International Trade

RICE

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For CARICOM, rice is not just an important food staple but for several

Member States its cultivation has been an important component of traditional

agricultural production, in many cases dating back to the period of East

Indian migration of the 19th century. Guyana and Surinam, however, are the

only exporters today. They sell to neighbouring countries and the EC. In

Guyana rice production accounts for 20% of total agricultural income and

12% of the total exports. About half of Guyana’s exports are to the EC where

preferences have been enjoyed for some time and are expected to continue

under the EPA being negotiated with the EC.

The international rice market is rather complex, with two major

categorisations — the round grain (Japonica) and the long grain (Indica).

CARICOM produces the latter. In addition rice is categorised by the extent

of its processing to determine its quality, or by the variety e.g. basmati.

CARICOM is both a major producer and importer of rice. Imports from

extra-regional sources are from the USA and Thailand and exports are

principally to the EC. Understanding that market is therefore essential to an

appreciation of CARICOM rice exports and their prospects.