vietnam rice prices dampened by rising supplies, india witnesses gradual demand surge
Published on: June 6, 2024.
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Rice Export Prices in Vietnam Weaker as Supplies Increase, Indian Rates Rise
Rice export prices from Vietnam have experienced a decline this week due to an increase in supplies from the current harvest. In contrast, rates for the Indian variety have risen as a result of limited supplies and a surge in demand from major importers.
India, the leading exporter of rice, has seen its 5% broken parboiled variety quoted at $539-$546 per metric ton this week, which marks an increase from the previous range of $535-$543.
An exporter based in Mumbai explained that there has been a gradual increase in demand from all major importing countries, with many giving preference to India because of the comparatively lower prices.
On the other hand, Vietnam’s 5% broken rice prices were offered at $575-$580 per ton on Thursday, down from the previous week’s range of $580-$585. Traders attribute the decrease to a continuous build-up of supplies during the ongoing harvest.
According to the agriculture ministry in Vietnam, rice paddy output this year is expected to remain the same as last year, totaling 43 million tons.
Vietnamese rice exports are anticipated to benefit from India’s export ban, which is expected to last until September, according to the Cong Thuong newspaper.
Meanwhile, Thailand’s 5% broken rice has remained relatively stable at $630 per ton due to flat demand. However, there has been some interest from markets such as the Philippines, Brazil, and Africa. Despite this, no major deals have been made that could impact prices. Buyers remain hesitant due to high prices, and the market is eagerly anticipating new supply from the off-season crop later this month.
Bangladesh expects its summer crop, known as ‘boro,’ to yield more than 20.7 million tons, surpassing last year’s output. Farmers have expanded their land holdings to take advantage of the higher prices, resulting in higher rice production. The ‘boro’ crop typically contributes to more than half of Bangladesh’s total rice production, which amounts to approximately 37 million tonnes.
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