Asia rice: India prices continue to rise due to limited supplies
Published on: February 7, 2024.
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BENGALURU/MUMBAI/HANOI/BANGKOK/BANGLADESH: Rice exporters in Asia are experiencing a surge in prices as demand remains strong and supplies tighten. Parboiled rice exports from India have reached record highs, driven by limited availability and increased demand due to higher prices in other countries. Meanwhile, Thai rates have slightly declined with the arrival of new harvests.
India, the top exporter, saw its 5% broken parboiled rice variety quoted at a record $537 to $546 per ton this week. Although prices in India are increasing, they still maintain a significant discount compared to supplies from Pakistan and Thailand, which continues to drive demand.
Pakistan is expected to witness a significant increase in rice exports, potentially reaching a record high by June. This surge is a result of India’s decision to limit shipments, which has prompted buyers to turn to Islamabad, despite the country’s grain being sold at nearly a 16-year high price.
Thailand’s 5% broken rice prices have slightly declined to $640 to $658 per ton, down from $665 per ton the previous week. This drop is attributed to the arrival of new crops, although Thai rice is struggling to win auctions due to its high prices. Vietnamese rice, on the other hand, has successfully won bids to Pakistan and Indonesia. Vietnam’s 5% broken rice was offered at $635 to $640 per metric ton, slightly up from $630 last week.
Vietnam’s rice exports have also received support from a memorandum of understanding on rice trade signed between Vietnam and the Philippines. This agreement has further contributed to the surge in prices.
It is clear that rice exporters in Asia are facing a period of increased demand and tight supplies. As prices continue to rise, it is important for buyers to explore all available options in order to meet their rice requirements.
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