India rice prices decline from all-time highs; Thai rates weaken due to baht depreciation
Published on: March 15, 2024.
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Rates of parboiled rice exported from India have slightly decreased from record highs this week as buyers search for cheaper options elsewhere. The weaker baht has also led to a decline in Thai prices.
India, the top exporter, is currently quoting its 5% broken parboiled variety at $548-$555 per metric ton, which is down from the previous week’s range of $552-$560.
African buyers, concerned about the current price level, are looking for more affordable alternatives, according to a Mumbai-based dealer with a global trade house.
Indian traders are hesitant to sign new contracts for parboiled rice exports as customs officials have recently changed the calculation method for the 20% export duty, resulting in a higher levy. This has led to a decrease in new contracts, as reported by four industry officials earlier this week.
In Thailand, the price of 5% broken rice has decreased to $615 per ton, compared to last week’s $620-$622 range. The drop in prices can be attributed to the weak baht and competition from neighboring Vietnam. Many Thai exporters have had to reduce prices in order to remain competitive.
While there is some demand from markets like Indonesia and the Philippines, there have been no significant deals. This information comes from a trader based in Bangkok.
The supply situation remains unchanged, with some new supply of rice entering the market, according to the same Bangkok-based trader.
In Vietnam, the price of 5% broken rice has slightly increased to $585 per ton, up from $580 the previous week. A trader based in Ho Chi Minh City explained that rice export prices in Vietnam have risen slightly due to an increase in domestic paddy prices. This is a result of exporters and processors making more purchases.
Preliminary shipping data shows that 450,250 tons of rice will be loaded at Ho Chi Minh City port in March, with the majority of the rice being shipped to the Philippines and Indonesia.
Overall, parboiled rice export rates have decreased in India and Thailand, while prices in Vietnam have slightly increased. Buyers are looking for more affordable options, and competition between exporters remains fierce.
Source: [BRecorder](https://www.brecorder.com)
