India’s Rice Rates Drop to Two-Month Low on Weak Demand in Asia
Published on: April 5, 2024.
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Prices of parboiled rice exported from top hub India reached their lowest level since early February this week as demand slowed. Meanwhile, Thai rates also declined for the fourth consecutive week due to a weaker baht.
India, the leading exporter, saw prices for its 5% broken parboiled variety drop to $540-$548 per ton, down from $550-$558 the previous week. Last month, prices had hit a record high of $560 after customs officials changed the method for calculating the 20% export duty, resulting in a higher levy.
According to Himanshu Agarwal, executive director at Satyam Balajee, a leading exporter, subdued demand from Asian buyers is the main reason behind the price decrease.
The customs department has also issued notices to Indian exporters, demanding payment of duty differentials on rice exported in the last 18 months. This unexpected tax demand could potentially harm rice shipments from India.
Thailand’s 5% broken rice prices have fallen to $570 per ton, down from $585-$590 last week. The depreciation of the baht and increased supply are the contributing factors to this decline in prices. Indonesian buyers are taking advantage of the lower prices.
Vietnam’s 5% broken rice is now offered at $580 per ton, compared to $590-$595 a week ago. Despite healthy demand, buyers are only offering lower prices, said a trader based in Ho Chi Minh City.
As the ongoing harvest of the winter-spring crop in Vietnam, the largest of the year, is set to end in more than a week, traders anticipate that prices will soon increase again.
Overall, the prices of parboiled rice from India and Thailand have dropped due to sluggish demand and a weaker currency. However, the upcoming end of the harvest season in Vietnam may lead to a rebound in prices.
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