Rice Prices in Asia See Decline Due to Soft Demand; Stable Rates in India
Published on: May 31, 2024.
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Prices of rice exported from Thailand and Vietnam have experienced a slight decrease this week due to lower demand and increasing supplies. However, rates for rice from India have remained steady, fueled by strong demand from African countries.
In Vietnam, the price for 5% broken rice was offered at $580-$585 per metric ton, slightly lower than the previous week’s range of $585-$590. Traders attribute this decrease to the rising supplies as farmers have started harvesting the summer-autumn crop. Vietnam’s rice exports in May are estimated to have increased by 35.5% compared to the same month last year, reaching 980,000 tons. Additionally, rice shipments in the first five months of this year are expected to have risen by 14.7% compared to the previous year, reaching 4.15 million tons of rice.
Thailand’s 5% broken rice was quoted at $620 to $630, a slight decrease from the previous week’s range of $630 to $635. This decline is attributed to a previous auction that artificially drove selling prices up but ultimately resulted in no sales of Thai rice. However, sustained demand from Africa and Iraq has provided support to prices, and additional supply is expected to enter the market in July and August.
On the other hand, India’s 5% broken parboiled rice has maintained a consistent price range of $535-$543 per ton. This is due to falling paddy supplies in central and eastern states of India. Demand for Indian rice remains stable as India offers lower prices compared to other countries.
In neighboring Bangladesh, prices have remained high despite good crops and reserves. This has put a strain on consumers in the country.
Overall, the rice export market is experiencing fluctuations in prices due to varying factors such as supply levels, demand from different regions, and market dynamics. While prices have slightly decreased in Thailand and Vietnam, Indian rice remains competitive in the market due to its affordable pricing.
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