Declining Indian Rice Prices Continue to Drop
Published on: October 27, 2023.
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Rewritten Article:
Parboiled Rice Prices in India Decline While Vietnamese Rates Show Improvement
MUMBAI/HANOI/ BANGKOK/BANGLADESH – The export prices of parboiled rice from India have experienced a decline for the fourth consecutive week due to the extension of a tax on shipments, which has impacted demand in the top hub. However, Vietnamese rates have seen a boost in response to fresh interest from Indonesia.
The prices of India’s 5% broken-parboiled rice have fallen to a range of $495-$505 per metric ton, down from $510-$520 last week. The decline can be attributed to India’s decision to extend a 20% export duty on parboiled rice until March 2024. In addition, exporters have been able to reduce their prices due to the decline in paddy prices with the commencement of new season supplies.
In response to concerns raised by farmers and exporters about the floor price set for basmati rice exports, New Delhi is expected to make adjustments. The current floor price has been deemed detrimental to trade. Meanwhile, Bangladesh has decided to backtrack on its plan to lift the ban on aromatic rice exports. Despite good yields and reserves, the country is struggling to control high domestic prices.
On the other hand, Vietnam has witnessed an increase in its 5% broken rice prices, reaching $640-$645 per metric ton compared to $625-$630 last week. This rise can be attributed to the renewed interest from Indonesia.
In conclusion, while parboiled rice prices in India experienced a decline due to tax extension and new season supplies, Vietnamese rates saw an improvement thanks to increased demand from Indonesia.
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