Asia Rice: India’s Rates Continue to Rise Due to Short Supply, While Thai Prices Decline.
Published on: February 6, 2024.
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Parboiled rice export prices from India continue to rise, reaching record highs this week due to limited supplies and strong demand. Meanwhile, Thai rice prices have seen a slight decrease as new harvests enter the market.
India, the top exporter of parboiled rice, is now quoting prices for the 5% broken parboiled variety at a record range of $537 to $546 per ton. Although Indian prices are increasing, they still remain significantly lower than those of Pakistan and Thailand. This price differential is contributing to the steady demand for Indian rice in the global market.
On the other hand, Pakistan’s rice exports are expected to surge to record levels by June, as Indian restrictions on shipments compel buyers to turn to Islamabad. Pakistan is currently selling rice at the highest prices seen in 16 years.
Thailand’s prices for 5% broken rice have dropped slightly to $640 to $658 per ton as new crops become available. However, Thai rice is facing challenges at auctions due to its relatively high prices.
Vietnamese rice, on the other hand, has been successful in winning bids to supply Pakistan and Indonesia. Prices for Vietnam’s 5% broken rice have risen to $635-$640 per metric ton, supported by a recent agreement on rice trade between Vietnam and the Philippines.
In other news, Bangladesh is considering reducing import duties on rice to lower the price of the country’s main food grain. This move aims to address concerns about rising rice prices in Bangladesh.
Overall, the global rice market is experiencing fluctuations in prices as supply and demand dynamics shift. India remains a competitive player in the market due to its relatively lower prices compared to other key exporters like Pakistan and Thailand.
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