India’s rice rates continue to rise due to limited supplies, while Thai prices show a decline.
Published on: February 6, 2024.
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Parboiled Rice Export Prices from India Reach Record Highs as Demand Surges
By Brijesh Patel
Feb 1 (Reuters) – Parboiled rice export prices from India have reached record highs this week due to tight supplies and strong demand, especially as prices in other major rice hubs have increased. Meanwhile, Thai rates have seen a slight dip as new supplies from fresh harvests start to trickle in.
India, the world’s top rice exporter, is witnessing a dramatic increase in prices for its 5% broken parboiled variety. This week, the rice was quoted at a record $537 to $546 per ton, compared to last week’s prices of $533 to $542 per ton.
Despite the rising prices, Indian rice still maintains a significant discount compared to supplies from Pakistan and Thailand. This factor is crucial in sustaining the demand for Indian rice, according to a Mumbai-based dealer with a global trade house.
On the other hand, Pakistan’s rice exports are projected to reach a record high by June as a result of India’s decision to curb shipments. Buyers are now turning to Islamabad, which is selling the grain at nearly 16-year high prices.
Meanwhile, Thailand’s 5% broken rice prices have experienced a slight decrease, with quotes ranging from $640 to $658 per ton, down from last week’s $665 per ton. These price drops can be attributed to the arrival of new crops, as noted by a Bangkok-based trader. However, Thai rice has not been performing well in auctions due to its high prices. In contrast, Vietnamese rice has successfully won bids to Pakistan and Indonesia.
Vietnam’s 5% broken rice is currently being offered at $635-$640 per metric ton, up from $630 per metric ton last week. This increase is a result of Vietnamese exporters being selected to supply the majority of the 500,000 tons in Indonesia’s recent tender, according to a trader based in Ho Chi Minh City. Furthermore, Vietnam and the Philippines recently signed a memorandum of understanding on rice trade, which has further supported prices.
In response to the rising prices, Bangladesh has announced that it will allow rice imports and reduce duties if necessary in order to lower the price of the country’s main food grain, as stated by Food Minister Sadhan Chandra Majumdar.
Overall, the global rice market is witnessing significant fluctuations in prices, with India experiencing record highs and other key players adjusting to new supplies and market demands.
**Source**: [Nasdaq](https://www.nasdaq.com)
