Steady demand offsets declining supply, keeping Asia rice prices stable
Published on: January 15, 2024.
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Prices of rice exported from major Asian hubs have remained steady this week, supported by declining supplies. Demand for rice has been moderate to flat, but exporters are unable to lower prices due to the strengthening rupee in India. In India, the price of the 5% broken parboiled variety is unchanged at $510-$517 per metric ton. Supplies are falling in northern states, contributing to the steady prices.
Vietnam’s 5% broken rice is offered at $653 per metric ton, also unchanged from last week. Global demand for Vietnamese rice is expected to remain strong, encouraging farmers to expand production. Preliminary shipping data shows that 80,840 metric tons of rice will be loaded at Ho Chi Minh City port in January, with most heading to the Philippines and Indonesia.
Thailand’s 5% broken rice prices are quoted at $648-$650 per ton, with consistent demand from Southeast Asian markets, particularly Indonesia and the Philippines. The fluctuation of the exchange rate has also played a role in holding the prices steady. Supply levels have dropped as the market waits for new crops to enter around February and March.
Overall, while demand for rice is moderate, the prices remain steady due to declining supplies. Farmers in Vietnam are encouraged to expand production, and Thailand continues to receive consistent demand from Southeast Asian markets. In India, the strengthening rupee prevents exporters from lowering prices.
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