Top exporter India’s rice prices fell for a third straight week to a 17-month low on weak demand and depreciation in the rupee to a record low.
“Demand was weak from both Asian and African buyers due to the New Year holidays. It could pick up next week,” a Kolkata-based dealer with a global trade house said.
The Indian rupee hit a record low against the dollar last week, effectively increasing the margins of exporters.
India’s 5% broken parboiled variety was quoted at $436-$442 per ton this week, down from last week’s $439-$445. Indian 5% broken white rice was quoted at $440-$449 per ton.
Meanwhile, traders in Thailand said the market is anticipating a drop in Thai rice exports this year due to India’s expected increase in exports.
“We expect that Thai rice export will decrease by about 30% as India begins to export more rice this year,” a trader said.
Thailand’s 5% broken rice was quoted at $490- $502 per ton, a small change from last week’s $502. This week, demand remained muted and supply situation remained unchanged.
Asia rice: Rupee plunge pulls Indian rice rates to 17-month low
A Bangkok-based rice trader said that lack of demand could likely lead to a further price drop.
Vietnam’s 5% broken rice was offered at $481 per metric ton, down from $485 a week ago, according to the Vietnam Food Association.
“Trading activity remains slow this week amid holidays,” a trader based in Ho Chi Minh City said.
Traders said activity will remain weak until after the week-long Lunar New Year holiday that begins Jan 25.
Elsewhere, Bangladesh has no shortage of rice, the country’s commerce adviser said earlier this week, adding that any shortfall will be covered through imports. Rice prices have risen by 10-12 taka per kilogram over the past year, putting a strain on consumers.
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