Rice is one of the pillars of the global food supply, following wheat and maize, and India is the world's top rice exporter. Unlike other grains, however, rice is not a fungible commodity because of the wide variation in rice varieties and country preferences. It is also unique compared to other globally traded grains, as it is the grain most commonly consumed in a milled rather than processed form; most wheat production eventually is used as bread or pasta, and maize is used for a variety of products from animal feed to sweeteners to fuel.
Because rice is usually consumed so close to the state in which it is harvested, strong local traditions and consumer preferences have developed over centuries of rice production and consumption. Short grain rice varieties grown in Thailand and Vietnam, Southeast Asia's leading export markets, are not suitable replacements for Indian and Pakistani exports of long grain Basmati rice to the Middle East. Similarly, the U.S. market's decision to commingle varieties of short, medium and long grain rice during poor harvests affects those varieties' desirability on the global market. Rice is of particular importance to emerging markets as well, being a chief food staple in the majority of emerging markets in Southeast Asia and the broader Indo-Pacific Basin.
