Export restrictions cause decrease in Indian rice prices as buyers await clarification
Published on: October 13, 2023.
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Indian Parboiled Rice Prices Experiences a Drop
Amidst speculations around an export duty set to terminate this weekend, prices for Indian exported parboiled rice have experienced a downward progression this week. This decline has been attributed to a hold-off in purchases by buyers.
India’s top-exported 5% white broken rice variety was noted to be priced between $515 and $525 per metric ton, decreasing from the previous range of $520 to $530.
“Buyers have adopted a wait-and-see approach as they are unsure if the government will permit duty-free exports after Oct. 15, or lengthen the duty period,” explained a dealer based in Mumbai affiliated with a global trade house.
Export Duty on Parboiled Rice
In a move that could lead to diminished shipments and escalating pakistani rice prices, a 20% export duty was imposed on parboiled rice by the Indian government in August. This measure is slated to last until Oct. 15.
However, an Indian government official revealed to Reuters on Wednesday that the 20% export duty increment on parboiled rice is expected to be extended till March 2024.
Global Rice Prices
Meanwhile, Thailand’s 5% broken rice prices reported an upsurge, hitting $580-$600 per metric ton, a significant rise from the previous week’s $585. Factors such as the appreciation of the baht and amplified domestic prices were quoted as the reasons behind this surge.
“The entire supply has been harvested, and there is incoming demand from Asia and Africa,” said a trader in Bangkok.
In Vietnam, the 5% broken rice was pitched at $615-$625 per metric ton on Thursday. This marks an increase from last week’s $610-$620 range. “The summer-autumn harvest’s constricting supplies alongside promises by Indonesia to execute more purchases this year has led to robust prices,” a trader from Ho Chi Minh City pointed out.
