I am thinking where it came from. Considering its size and structure. It is not something that could easily bore through rice grains. If it could open its mouth wide enough, it can swallow a single grain whole. It is too big to be a weevil larvae. Based from what I know, larvae like this, loves fleshy fruit and not hard grains.
Perhaps it came from nearby fruits. The seller might also selling ripening fruits. Or, it was accidentally introduced. My wife is fond of placing fruits on top of rice to hasten ripening.
What I did with the rice? It is not like I am going to be in health trouble due to occurrence of one worm. My favorite quote” if the worm survives the rice, the more will I”. I merely removed the worm and continue cooking….