Thai Rice Prices in Asia Reach 15-Year Highs
Published on: December 29, 2023.
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Prices of rice exported from several Asian countries have risen due to supply constraints. Thai rice prices have reached a fifteen-year high, with a yearly gain of 41% so far. The increase in prices is attributed to new demand from overseas, particularly from Indonesia and the Philippines, as supply is short ahead of the New Year holiday. On the other hand, India’s parboiled rice prices have also surged to a two-month peak due to limited supplies and competition from other countries.
Thailand’s 5% broken rice is now priced at $655-$660 per metric ton, its highest since October 2008, compared to last week’s prices of $646-$650. Similarly, India’s 5% broken parboiled rice is quoted at $508-$515 per metric ton, reflecting its highest level since October. Vietnam’s 5% broken rice, however, has seen a slight decline to $653 per metric ton from last week’s prices of $660-$665. Despite the decline, Vietnam’s rice prices have gained 44% for the year.
Looking ahead, Vietnam’s rice exports are expected to continue to major markets such as the Philippines, China, and Indonesia. However, exports to Ghana and Egypt may decrease slightly. India’s rice output is projected to decline this year, which could result in restrictions on grain exports to control food prices ahead of elections.
Overall, the increase in rice prices is driven by supply constraints and growing demand from overseas markets. The shortage of supply has led to price rallies in various Asian countries. It remains to be seen how these price trends will evolve in the coming months.
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