India rice rates surge due to low supplies while Thai prices decline
Published on: February 6, 2024.
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India’s parboiled rice export prices continued to rise this week, reaching record levels due to limited supplies and strong demand. Meanwhile, Thai rice prices saw a slight decline as new harvests entered the market.
Record Prices for Indian Parboiled Rice
India, the top exporter of rice, saw its 5% broken parboiled rice variety trade at a record price of $537 to $546 per ton this week, up from the previous week’s range of $533 to $542. Despite the rising prices, Indian rice remains significantly cheaper than supplies from Pakistan and Thailand, contributing to sustained demand.
A Mumbai-based dealer with a global trade house explained, “Indian prices are rising, but they still trade at a steep discount compared to supplies from Pakistan and Thailand. This discount is helping to maintain demand.”
Record Rice Exports for Pakistan
With India placing restrictions on rice shipments, Pakistan’s rice exports are expected to reach a record high by June. As buyers turn to Islamabad for supply, the grain is being sold at nearly 16-year high prices.
Thai Rice Prices Experience a Slight Decline
Thai 5% broken rice prices dropped this week to $640 to $658 per ton from the previous week’s $665 per ton. The decline was attributed to new crops entering the market, increasing supply. However, high prices prevented Thai rice from winning bids at auctions.
On the other hand, Vietnamese rice won bids to Pakistan and Indonesia, with their 5% broken rice variety offered at $635-$640 per metric ton, up from $630 a week ago.
Traders noted that Vietnamese rice exporters were selected to supply the majority of the 500,000 tons in an Indonesian tender. Prices were also supported by a memorandum of understanding on rice trade signed between Vietnam and the Philippines earlier in the week.
Rice Imports Allowed in Bangladesh
Bangladesh’s Food Minister, Sadhan Chandra Majumdar, announced that the country will allow rice imports with reduced duties if necessary to lower the price of the country’s main food grain.
Source: Nasdaq
