In a surprise that no one expected… rice prices are at their lowest level in 3 years!
The ton fell to 20 thousand pounds in total after it had reached record numbers in recent months and exceeded 40 pounds per kilogram for the consumer.
This big decline is not accidental
This year, there was a huge surplus in production, reaching more than 850 thousand tons. This was due to a very strong harvest season that produced about 7 million tons of rice barley, meaning much more than the needs of the local market.
With this increase, the market became saturated, and prices began to gradually decline throughout the year until they reached their lowest level today.
There are also other factors that helped this decline, such as the great recession in the market, and the fact that citizens reduced their consumption of goods in general due to living conditions.
Otherwise, the closure of the Rafah crossing returned thousands of tons that were going as aid to Gaza, so they entered the market again and prices fell further.
However, a large portion of the Sudanese guests returned to their country, and this clearly reduced the demand for rice and basic commodities.
Now, the wholesale price of rice remains 20 pounds per kilo, and for the consumer it ranges between 22 and 25 pounds, depending on the region and the nature of supply and demand.
I mean, after years of insane rise…it is clear that rice has returned to a reasonable price…and the market is heading towards stability that may continue with us until the end of 2025.
