Valencian rice producers face crisis as prices fall below production costs

Rice producers in the Valencian Community are facing a severe economic crisis, with La Unió Llauradora reporting that selling prices are 35.2% below production costs. Currently, producing one kilogram of rice costs 0.54 euros, while the offered price is only 0.35 euros, resulting in a loss of 0.19 euros per kilo.

The crisis is driven by several factors, including high production costs, crop losses due to diseases such as ‘cucat’ and rice blast (piricularia), low prices offered by the industry, and a surge in imports from countries including Cambodia, Vietnam, Myanmar, and Thailand. Some origin quotations have reportedly fallen by more than 40% compared to previous campaigns.

In response, the Generalitat Valenciana and agricultural organizations are calling on the European Commission to recognize market disturbances and activate the safeguard clause to limit imports. Farmers have issued an unprecedented warning: if market conditions do not improve, they may stop planting rice altogether next year, a move that would significantly impact the landscape and ecosystem of the Albufera Natural Park.