India Rice Rates Hit 2-Month Low on Softening Trend in Asia
Published on: April 7, 2024.
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Prices of parboiled rice exported from India have reached their lowest level since early February due to sluggish demand. This decline in prices is also seen in Thai rates, which have decreased for the fourth consecutive week following a weaker baht. The 5% broken parboiled rice variety from India was quoted at $540-$548 per ton, compared to last week’s $550-$558. Last month, prices hit a record high of $560 after a change in the calculation method for the 20% export duty. However, demand from Asian buyers has been subdued, leading to the decrease in prices.
Himanshu Agarwal, the executive director at Satyam Balajee, a leading exporter, stated that the decline in prices is a result of the lower demand compared to the previous month’s highs. Indian exporters have also received notices from the customs department, demanding payment of duty differentials on rice exported in the last 18 months. This unprecedented tax demand has the potential to hinder rice shipments from India.
Thailand’s 5% broken rice prices have also dropped to $570 per ton from last week’s $585 to $590. The depreciation of the baht and increased supply have contributed to the decline in prices. This has attracted demand from buyers such as Indonesia.
Vietnam’s 5% broken rice is being offered at $580, down from $590-$595 a week ago. Although demand remains healthy, buyers are only willing to offer lower prices. Traders predict that the ongoing harvest of the winter-spring crop, the largest of the year, will conclude in slightly over a week.
Source: [BRecorder](https://www.brecorder.com)
