Arable Crops
Rice - European Union Regime
Introduction
The EU's rice regime covers both basic grains, as defined at Annex A to the Guide, and grain products - rice flour, rice groats and meal, flaked rice and rice pellets.
The rice market consists of indica (long grain) or japonica (mostly round or medium length grain) rice grown only in Southern Member States. Traditional EU production is of japonica, although production of indica has increased in recent years. Demand in Northern Member States is almost entirely for indica. Most of this is imported mainly in husked form for milling within the EU.
The EU's rice regime has the structure of a 'classic' Community regime: rice is freely traded within the Community, a politically-determined common intervention price provides a floor to internal market prices, a duty system provides protection against low prices/imports and refunds are payable to help bridge the gap between the EC and world market prices for exports.
In recent years there has been a shift away from market support to area support via direct payments. This process was continued under the 2003 reform.
Further reform
EU Agriculture Ministers agreed fundamental reform of the CAP on 26 June 2003, breaking the link between subsidy and production. This included a reformed Common Market Organisation for rice to allow the EU market to prepare for the full implementation of EBA (Everything But Arms Agreement) from 2009.
The detailed text was adopted by the Council in September (Council Regulation 1785/2003). The main changes are as follows:
- ·50% reduction in the intervention price (to €150/tonne) to be applied from 2004/05;
- Intervention to be limited to 75,000t per year;
- Abolition of monthly increments;
These measures took effect from 1 September 2004, the start of the 2004/05 marketing year.
The Rice Regime Guide provides more detail on the coverage of the Common Market Organisation.
Latest news on market and production issues in the rice sector is available here.
Regime Guide
The latest version 
(31KB) was published in September 2006.
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Page last modified:
7 September 2006
Page published: 26 January 2005