Rice export prices fell to 3-month low on shrinking demand, ample supplies

By Reuters

Top exporter India’s rice export prices fell to their lowest level in more than three months this week on subdued demand and ample supplies, while Thailand’s prices remained largely flat.

India’s 5% broken parboiled variety was quoted at $528-$536 per ton this week, down from last week’s $538-$546. Prices hit a record high of $560 last month.

“Demand is very weak from Asian and African countries. Some exporters are paying lower duties on exports and offering rice at a lower price to overseas buyers,” said an exporter based in the southern state of Andhra Pradesh.

New Delhi imposed a 20% export duty on parboiled rice exports in August 2023 to control domestic rice prices.

Meanwhile, Vietnam’s 5% broken rice was offered at $575-$580 on Thursday, unchanged from Wednesday, according to traders. Trading activity is slowing down ahead of a five-day-long holiday beginning this weekend, a trader based in Ho Chi Minh City said.

“The slowdown in purchases by domestic rice processors has put downward pressure on domestic paddy rice prices,” the trader added.

Vietnam’s markets will be closed from Monday through Wednesday for national holidays.

Thailand’s 5% broken rice prices were quoted between $580-$585 per ton, similar to last week’s levels of $585 per ton. Price movement was flat from Indonesian demand and a depreciating baht kept prices strong, said a Bangkok-based trader.

In Bangladesh, rice output from the summer crop is likely to hit 20.50 million metric tons, up from 20 million metric tons, as farmers raised acreage to cash in on higher prices, an agriculture ministry official said.

The summer-sown crop, also known as “Boro”, usually contributes more than half of Bangladesh’s typical rice production of around 37 million tonnes.

This article has been republished from The Business Standard.