The Minns Labor Government last night passed legislation to increase competition and boost the long-term viability of the state's rice industry, by deregulating the state's rice industry through a transition period from 1 September to 1 July 2025.
This is an important element of the NSW Government's commitment to delivering new opportunities to the agriculture sector, and making sure regulations do not hinder industry growth.
The legislation ends the statutory controlled single rice export marketing ('vesting') arrangement and will open up the market to a more diverse choice for how rice growers sell and market their rice.
The changes are being made following extensive engagement from NSW's rice growers requesting an opening up of the market by deregulating the historical restrictive selling arrangements.
The NSW Government's legislation will initiate a series of practical steps for transitioning the way rice is marketed to consumers and international export markets, and cover the following:
- The emerging Northern Rivers rice growing region will no longer be restricted by the current vesting arrangements from 1 September 2024, allowing their rice crops from 2024/25 to be sold into domestic and international markets without restriction
- Vesting for the Southern NSW growing region will end by 1 July 2025, allowing the 2025/26 crop onwards to be exported free of the vesting arrangements
- The Rice Marketing Board that has overseen the regulated market will be wound up by 1 July 2026, with any residual funds to be reinvested to benefit the NSW rice industry.
These modernising changes are consistent with the key recommendations of the recent Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) independent report recommending that the vesting regulation be ceased. This aligned with the findings of the former NSW Government's 2021 review which promoted economic benefits from ending vesting.
NSW is Australia's rice production powerhouse, with 99% of the nation's rice grown in the state, contributing a farm gate value of $219 million in 2022-23.
To enable a successful transition for growers the NSW Government has established a Stakeholder Reference Group to collate views on the following important issues:
- R&D opportunities to support alternate supply chains
- Ensuring seed supply is maintained for all rice growers
- Unwinding the affairs of the Rice Marketing Board once vesting ends
- Investigating regional development opportunities
- Mechanism to deliver any residual assets of the Board back to benefit the rice industry.
Minister for Agriculture Tara Moriarty said:
"Our Government recognised things needed to change for NSW's rice industry, after listening to the rice industry growers from across the state in both the Northern Rivers and in the Riverina.
"I am proud to say we have delivered what rice growers and the industry requested was in their industry's best interests, making it easier to get this world-class rice into global markets.
"The Government's setting up of a Stakeholder Reference Group will positively contribute to the sector's transition and advise on options for using any residual funding from the winding up of the Rice Marketing Board to ensure it benefits the NSW rice industry.
NSW Minister for Industry and Trade Anoulack Chanthivong said:
"The world has changed dramatically since the 1920s when this system was established, so we're getting on with the job of modernising the rice market.
"This will help deliver a system that rewards new products and innovation in the rice market.
"This is good news for regional economies that will benefit from better and more flexible trade into the most lucrative global markets.
