India’s Rice Rates Surge Due to Low Supplies, Thai Prices Decline
Published on: February 5, 2024.
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Parboiled rice exports from India continue to surge, reaching new record highs this week due to limited supplies and strong demand, while prices in other major rice hubs have experienced a decline.
India, the top exporter of rice, saw prices for its 5% broken parboiled variety rise to a record $537 to $546 per ton this week, surpassing the previous week’s range of $533 to $542. Despite the increasing prices, Indian rice remains significantly cheaper compared to supplies from Pakistan and Thailand, which has helped to maintain demand, according to a Mumbai-based dealer from a global trade house.
Pakistan’s rice exports are expected to reach a record high by June, as buyers turn to Islamabad following India’s decision to restrict shipments. Pakistan is selling rice at nearly 16-year high prices, which has made it a more attractive option for buyers.
Thai rice, on the other hand, witnessed a decline in prices for its 5% broken variety, which was quoted at $640 to $658 per ton, down from $665 per ton the previous week. The decrease in prices can be attributed to the arrival of new harvests, although Thai rice has struggled to win bids at auctions due to its high pricing.
Vietnamese rice, however, saw an increase in prices for its 5% broken variety, with offers ranging from $635 to $640 per metric ton, up from $630 a week ago. This rise in prices followed Vietnamese exporters being selected to supply a majority of the 500,000 tons in Indonesian Bulog’s latest tender. Additionally, a memorandum of understanding on rice trade between Vietnam and the Philippines, signed earlier this week, further supported the prices.
In other news, Bangladesh has announced that it will allow rice imports with reduced duties if necessary in order to lower the price of the country’s main food grain.
Overall, the rice industry in Asia is witnessing various trends and developments, with India experiencing record high prices, Pakistan benefiting from increased exports, and Thailand facing challenges at auctions. Meanwhile, Vietnam is capitalizing on export opportunities and Bangladesh is taking measures to control rice prices.
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