India’s rice rates hit a two-month low due to weak demand in Asia
Published on: April 5, 2024.
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Prices of parboiled rice exported from India, the top hub for rice exports, have reached their lowest level since early February. The decline in prices is due to sluggish demand in the market. In addition to this, Thai rates have also decreased for the fourth consecutive week because of a weaker baht.
This week, India’s 5% broken parboiled rice was quoted at $540-$548 per ton, a decrease from last week’s $550-$558. It is worth noting that prices had reached a record high of $560 last month when customs officials changed the calculation method for the 20% export duty, resulting in a higher levy.
Himanshu Agarwal, executive director at leading exporter Satyam Balajee, stated that demand from Asian buyers has been subdued, which has led to the decrease in prices from the previous month’s highs.
However, Indian exporters have received notices from the customs department demanding payment of duty differentials on rice that was exported in the last 18 months. This rare tax demand has the potential to severely impact rice shipments from India.
Thailand’s 5% broken rice prices were quoted at $570 per ton this week, down from $585 to $590 quoted last week. This decrease in prices can be attributed to a depreciating baht and an increase in supply.
Vietnam’s 5% broken rice was offered at $580 this week, a decrease from $590-$595 a week ago. Although demand remains healthy, buyers are only offering lower prices, according to a trader based in Ho Chi Minh City.
Traders have stated that the ongoing harvest of the winter-spring crop, which is the largest harvest of the year, will conclude in a little over a week. They predict that prices will likely increase again once the harvest is complete.
Overall, the rice export market has experienced a decline in prices due to sluggish demand and other factors. However, there is optimism that prices will recover in the near future.
Source: [Source](https://www.brecorder.com)
