“Indian rice market sees price drop as export restrictions confuse buyers”
Published on: October 13, 2023.
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Indian Parboiled Rice Prices Drop While Thai and Vietnamese Rice See Gains
The prices of parboiled rice exported from India extend their downfall this week, following suspension in purchases as buyers decide to wait out the imminent expiry of an export duty.
Awaiting Clarification on Export Duty
India’s top export, a 5% broken-parboiled variety, has dropped in price to a quoted $515 to $525 per metric ton from its previous range of $520 to $530 last week. Buyers are still holding back from purchase, choosing to wait and see if the government would allow duty-free exports or extend the duty beyond its expiry date of October 15, according to a Mumbai-based dealer who works with a global trade house.
In August, India applied a 20% export duty to parboiled rice, expected to be effective until the 15th of October, resulting in a potential decrease in its exports and a subsequent rise in global rice prices.
Plans for Export Duty Extension
While Thailand sees a rise in their 5% broken rice prices to $580-$600 per metric ton, an official from the Indian government told Reuters they plan to extend the 20% export duty on their parboiled rice until March 2024. The rise in Thai rice prices is due to increase in domestic prices and appreciation of the baht, according to a Bangkok-based trader.
Vietnam’s Rice Market
Vietnamese 5% broken rice was quoted at $615-$625 per metric ton on Thursday, showing an increase from its value of $610-$620 the week before. Considering the declaration from Indonesia to increase their rice purchases this year, alongside the thinning supplies from the summer-autumn harvest, a rise in prices was expected, says a trader based in Ho Chi Minh City.
