India’s rice rates increase in response to growing demand in Asia.
Published on: November 17, 2023.
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Rice Prices Increase in Asian Markets as Demand Rises
BENGALURU/MUMBAI/HANOI/BANGKOK/BANGLADESH: Rice prices rose in most Asian centers this week, with export rates for the parboiled variety in top hub India gaining on a slight improvement in demand, while increasing supplies from the new season crop capped further upside.
India’s 5% broken parboiled variety was quoted at $493-$503 per ton this week, versus last week’s $490-$500.
“Even after paying a 20% export duty, Indian rice remains cheaper than supplies from other countries. Price sensitive buyers have no choice but to buy from India,” said an exporter at Kakinada in the southern state of Andhra Pradesh.
India last month expanded curbs on rice exports with a 20% duty on parboiled rice until March 2024.
In Bangladesh, domestic prices of rice have gone up this week despite good yields and reserves, traders said, hitting consumers already battling with high inflation.
“Rice market is suddenly unstable, increased by 2 to 5 taka per kg,” a trader said. Thailand’s 5% broken rice prices was quoted at $570-$575, up from last week’s $562.
Increase in Demand for Indian Rice
Despite the 20% export duty imposed on Indian rice, it remains more affordable than supplies from other countries. This has led to an increase in demand for Indian rice, especially from price-sensitive buyers who have no choice but to purchase from India. The current price range for India’s 5% broken parboiled rice variety is $493-$503 per ton, slightly higher than the previous week’s range of $490-$500.
The expanded curbs on rice exports in India, including the 20% duty on parboiled rice, will remain in effect until March 2024.
Price Hike in Bangladesh
Despite having good yields and reserves, rice prices in Bangladesh have increased this week, adding to the burden of consumers already struggling with high levels of inflation. The sudden instability in the rice market has led to a price increase of 2 to 5 taka per kg.
Thailand’s Rice Market
In Thailand, the price of 5% broken rice has seen a slight increase this week. The current price range stands at $570-$575, compared to last week’s range of $562.
Source: BRecorder
