Asia Rice: India prices extend declines, Vietnam rates rise on Indonesian bids

By Reuters

Rice export prices in India fell for a second straight week due to sluggish African demand, while Vietnam’s prices edged up on the back of Indonesia’s increased bid for supplies. Top exporter India’s 5% broken parboiled variety was quoted at $543-$550 per metric ton this week, compared to $548-$555 last week and a record high of $560 earlier this month.

“African buyers are in wait-and-watch mode because they’ve got the stocks they need to cover short-term demand. They’re just waiting for prices to correct before diving into new purchases,” said a New-Delhi based exporter. Indian traders are signing few new contracts for parboiled rice exports after customs officials changed the calculation method for the 20% export duty, resulting in a higher duty, four industry officials told Reuters earlier this week.

Meanwhile, in Vietnam, the 5% broken rice variety was offered at $590-$595 per metric ton, compared to $585 a week ago. “Prices rose higher after Indonesia earlier this week invited bidders for the supplies of 300,000 additional tons,” a trader based in Ho Chi Minh City said.

Thailand’s 5% broken rice prices were quoted at $598 per ton on Thursday, down from $615 last week.Traders attribute the drop to the weakening of the baht while domestic prices remain largely unchanged. The Thai baht fell 0.5% against the dollar so far this week. There is some demand with a potential tender from Indonesia, a trader said without specifying the size of the deal.

This article has been republished from The Financial Express.