Export prices for rice slipped in top exporter India this week as demand slowed amid weakness in the rupee, while Vietnamese rates rose on the back of recent deals and prospects of newer ones. Rates for India's 5 percent broken parboiled variety fell by $8 to $419-$423 per tonne. "Asian buyers like Bangladesh and Sri Lanka are not active. They're waiting for a correction in prices," said an exporter based at Kakinada in the southern state of Andhra Pradesh.
The Indian rupee fell to a near five-month low on Thursday, prompting exporters to offer lower rates. The country's non-basmati rice exports during April-February jumped 30 percent from a year earlier as Bangladesh, Benin and Sri Lanka raised purchases. Imports by Bangladesh, however, which had emerged as a major buyer since 2017 after floods damaged crops, could plunge 66 percent from a year ago to 1.2 million tonnes in 2018/19 as it is likely to harvest a bigger crop, industry officials said.
"Farmers have not left any land unplanted this season due to higher prices," said Mohammad Mohsin, director general of Department of Agriculture Extension. In Vietnam, 5 percent broken rice rose for a third straight week to $435-$440 a tonne from $425-$430 previously, on recent deals with Indonesia and Philippines. "Prices have been rising due to new government deals and also because the area devoted to growing regular rice is shrinking as farmers are growing more fragrant rice," a Ho Chi Minh City-based trader said, adding that prices will remain high as more deals are expected over coming weeks.
"I've heard Philippines extended its invitation to Vietnamese and Thai exporters to talk about a deal for 250,000 tonnes of 25-percent broken rice in private placements, for deliveries in May and June. The meeting is scheduled for Thursday next week, and the result will likely be announced on April 24." Vietnam exported 658,818 tonnes in March, up 94 percent from February, official customs data showed. The reading is higher than a government estimate of 520,000 tonnes.
Exports in the first quarter rose 20 percent from a year earlier to 1.49 million tonnes while export revenue rose 38.1 percent. Meanwhile, Thailand's 5 percent broken rice prices narrowed to $437-438 per tonne, free on board (FOB) Bangkok, versus $430-$448 last week, as activity slowed ahead of the Songkran, or Thai New Year, holiday from April 12-16, a Bangkok-based trader said. While exporters are speculating about new deals with Indonesia and Philippines, they're also stocking up on expectations of demand for parboiled rice from Africa later this year, the trader said.
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