High Shipping Costs Weigh on Vietnam’s Rice Rates, Indian and Thai Variants Remain Stable
Published on: June 15, 2024.
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Rice Export Prices Show Slight Dip in Vietnam but Remain Steady in Other Asian Hubs
Rice export prices from Vietnam have seen a minor decrease this week due to rising shipping costs. Meanwhile, prices of rice exported from other major Asian hubs have remained steady. Traders reported that Vietnam’s 5% broken rice prices were offered at $570-$575 per metric ton on Thursday, down slightly from $575-$580 a week ago. The increase in shipping costs, both domestically and internationally, has had an impact on rice shipments, according to a trader in Ho Chi Minh City.
Another trader in the city mentioned that the recent decision by the Philippines to lower its import tariff on rice will lead to an increase in shipments of Vietnamese rice. The Philippines has long been Vietnam’s largest rice export market. In May, Vietnam’s rice exports saw a 14.6% decrease from the previous month, with 856,000 tons shipped, according to government customs data. However, for the first five months of this year, the country’s rice exports rose by 11.2% compared to the same period last year, reaching 4.02 million tons.
Meanwhile, India, the top exporter, has maintained the price of its 5% broken parboiled variety at $539-$546 per ton this week, unchanged from the previous week. According to a trader based in Mumbai, African buyers are continuing to make purchases, and the depreciation of the rupee is allowing exporters to handle the rising local prices due to falling supplies.
In Thailand, the price of 5% broken rice remains unchanged at $630 per ton, similar to the previous week. A trader in Bangkok shared that Indonesia and the Philippines continue to be regular customers, and there are expectations of new demand and additional crops coming in July.
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