Italy’s Vercelli rice market faces challenges amid weak demand, rising costs
A tense standoff between rice farmers and industrial buyers is currently defining the landscape, as both sides grapple with an economic tug-of-war that shows little sign of easing.
ITALY – Italy’s key rice trading hub of Vercelli has fallen into a market standoff as cautious buyers push back against current prices while farmers hold back sales, creating a deadlock that is squeezing producers across the region, according to traders and industry sources.
Production costs remain a central pressure point for Italian rice farmers. Expenses tied to fertilizers, diesel, and energy have stayed elevated, making it increasingly difficult for sellers to cover their operating costs.
Giuseppe Re, a broker at Riso Italia, noted that the financial strain on many farmers has become significant, with little relief in sight, given the current trading climate.
Weak demand and high stock levels are compounding the problem by pushing prices downward. Buyers have grown hesitant to commit at existing market rates, deepening the stalemate.
Platts assessed white rice Arborio and Indica 5% Broken EX-works at €1,000 (US$1,171.04) per metric ton and €630 (US$737.72) per metric ton, respectively, as of April 24, 2026.
The tension reached a breaking point recently when rice farmers staged a strike at the Vercelli market.
A second broker explained the core of the dispute: paddy prices are considered too low by farmers, yet rice mills are reluctant to buy paddy because their customers view finished white rice prices as too high.
The result is a supply chain gridlock where neither end of the market can find common ground.
In response to these pressures, Italian rice producers are adjusting their planting strategies for the upcoming season.
A new survey by Italy’s National Rice Board reveals a notable shift in variety preferences.
Round grain planting is set to expand by 36%, adding roughly 20,000 hectares, driven largely by a more than 50% surge in Centauro plantings.
Conversely, Long B varieties are projected to decline by 18%, while many Long A varieties may see reductions of between 10% and 15%.
The Roma, CL145, Cammeo, and CL712 group faces a projected decline of approximately 38%, with CL145 expected to suffer the sharpest fall due to poor market reception and dropping prices.
Meanwhile, Arborio and Carnaroli varieties are forecast to see planting area grow by 15% to 22% as farmers pivot toward more resilient, higher-yielding options to navigate ongoing market and agronomic challenges better.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
