Asia rice prices in India continue to drop due to decreased demand caused by export duty.
Published on: October 27, 2023.
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**Parboiled Rice Export Prices Decline in India, While Vietnamese Rates Increase**
Export prices of parboiled rice from India have experienced a decline for the fourth consecutive week. This can be attributed to the recent extension of a tax on shipments from the country’s top hub, which has resulted in reduced demand. On the other hand, Vietnamese rates have seen an increase due to fresh interest from Indonesia.
Currently, India’s 5% broken-parboiled rice prices have fallen to $495-$505 per metric ton, a decline from the previous range of $510-$520.
The decrease in prices can be directly linked to India’s decision to extend a 20% export duty on parboiled rice until March 2024. This move has adversely affected the demand for Indian parboiled rice.
Furthermore, the decline in paddy prices as a result of the new season’s supplies has allowed exporters to reduce their export prices, as stated by a New Delhi-based exporter.
To address concerns raised by farmers and exporters regarding the floor price set for basmati rice exports, the government of India is expected to revise it. This decision comes in response to the negative impact it has had on trade.
In neighboring Bangladesh, plans to lift a ban on aromatic rice exports have been put on hold due to the country’s struggle to control high domestic prices, despite good yields and reserves.
Meanwhile, in Vietnam, prices for 5% broken rice have seen an increase, reaching $640-$645 per metric ton. This rise is attributed to strong demand from Indonesia, coupled with flat domestic supplies. The trader based in Ho Chi Minh City also mentioned that tensions in the Middle East could motivate countries to bolster their food stockpiles, thus contributing to the increase in prices. Moreover, concerns about a lower autumn-winter harvest output have also contributed to the price hike.
Data reveals that a total of 331,750 tons of rice are set to be loaded at Ho Chi Minh City port from October 1 to 27, with most of it being shipped to the Philippines, Indonesia, and Cuba.
In Thailand, prices for 5% broken rice have slightly decreased to $568-$570 per metric ton from the previous range of $575-$580. The decline is attributed to additional supply released by millers. However, this decline is capped due to demand from Indonesia, which is seeking deliveries before Christmas.
Additionally, India’s decision to ease export restrictions on non-basmati white rice to certain countries, as well as weaker demand from Africa, have also contributed to the dip in prices, according to another trader.
In conclusion, parboiled rice export prices have experienced a decline in India due to the extension of a tax on shipments, while Vietnamese rates have increased due to strong demand from Indonesia. The overall market dynamics, including supply and demand factors, play a crucial role in determining the prices of rice in these countries.
**Source:**
[Source](https://www.brecorder.com)
