Say yes to Rice! Indian Basmati price set to be cheaper as exports fall
The price of Indian rice exports fell even lower this week on expectations that New Delhi might ease export restrictions following a record surge in stocks. Meanwhile, Thai rates dropped to an 8-month low due to softer demand and higher supply. “Buyers are delaying purchases due to higher freight rates and expectation that India might lift some restrictions on rice exports, which is expected to bring down prices globally,” said a Kakinada-based exporter in India’s Andhra Pradesh state.
India, a leading exporter, quoted a price of $537 -543 per tonne for its 5 per cent broken parboiled type. This lower than the $539 -545 range quoted last week.
According to official sources, India plans to lower the floor price for exports of basmati rice and replace the 20 per cent export tax on parboiled rice with a set charge on shipments abroad, given that the nation’s rice inventories have risen to all-time highs.
In 2023 and 2024, the nation implemented different export restrictions in an attempt to control local prices before the general elections that took place in April and May.
Prices for 5 per cent broken rice in Thailand were quoted at $570 a tonne on Thursday, the lowest since early November 2023, after ranging between $570 and $575 the previous week. However, the prices of Vietnam’s 5 per cent broken rice rates , which were close to one-year lows last week, were offered at $565 to $570 per tonne on Thursday.
It is anticipated that India is probably going to replace the 20 per cent export tax on parboiled rice with a floor price for exporting basmati rice. A merchant in Bangkok said that demand had been low this week, but added that fresh supply was on the way and that good water might result in high yields this year.
The markets were expecting fresh supplies next month, another trader stated, adding that despite the cut in the import tax in the Philippines, there were no significant orders coming from that country or from other usual clients like Indonesia.
This article has been republished from The Financial Express.