Record Highs for India Rice Prices due to Limited Supply and Strong Demand
Published on: January 26, 2024.
Filed under:
Record Highs for Parboiled Rice Exported from India
The rates of parboiled rice exported from India, a major hub, have reached record highs due to limited supplies and steady demand from buyers in Asia and Africa. Meanwhile, prices have decreased in Vietnam and Thailand.
India’s 5% broken parboiled rice variety is currently quoted at a record $533-$542 per ton, an increase from last week’s $525-$535.
Nitin Gupta, the senior vice president of Olam Agri India, explained that the limited supplies in the market are due to the government’s paddy buying, which leaves little for private players. Additionally, the ongoing rice milling of the new season crop further reduces the availability of milled rice.
It is predicted that India’s rice output will decrease this fiscal year, the first decline in eight years. As a result, there is a possibility that New Delhi will restrict exports of the grain to control food prices in the lead-up to elections.
Vietnam and Thailand Experience Price Decreases
In Vietnam, the price of the 5% broken rice variety has decreased to $630 per metric ton, down from $653 per ton a week ago. Traders note that domestic supplies are accumulating, and the harvest has begun partially in the Mekong Delta, with a peak expected in March.
In Thailand, the price of the 5% broken rice variety is currently quoted at $663-$665 per ton, slightly lower than last week’s $665. This decrease can be attributed to a weakening baht. However, domestic activity and a fresh order for 0.5 million tonnes from Indonesia have helped buoy prices.
Elevated Rice Prices in Bangladesh
Despite good yields and record reserves, rice prices in Bangladesh remain elevated after a sharp rise last week. This has prompted Prime Minister Sheikh Hasina to issue orders for immediate action against rice hoarders.
Source: BRecorder
