India rice rates extend decline

BENGALURU, MUMBAI, BANGKOK, DHAKA AND HANOI: Indian rice export prices fell for a third straight week, pressured by weak demand, a soft rupee and oversupply, while domestic rates in Bangladesh remain high despite a bumper harvest.

India’s 5% broken parboiled variety was quoted at $375-$380 per ton, its lowest since mid-2023. Last week, prices ranged between $377 and $382.

Indian 5% broken white rice was priced at $372 to $377 per ton this week. The rupee’s depreciation and ample supplies from last year’s crop are allowing exporters to lower prices, while overseas demand remains subdued, said a New Delhi-based trader with a global trade house.

Meanwhile, rates in Bangladesh have been high despite a bumper harvest, which has risen 15% over the past year. Although summer rice production hit a record, neither farmers nor consumers are benefiting amid high input costs, market manipulation by middlemen, and inefficiencies in the supply chain, market insiders said. Vietnam’s 5% broken rice was offered at $381 per metric ton, according to the Vietnam Food Association. Last week, traders said prices were at $380-$390 per ton.

Earlier this week, state media reported that the Philippines remained Vietnam’s top rice buyer in the first half of this year, taking 41.4% of 4.9 million tons shipped. Ivory Coast and Ghana accounted for 10.7% and 10.5%, respectively, while exports to Malaysia dropped 61%. “Some traders are increasing their purchases from farmers for their future contracts,” a trader based in Ho Chi Minh City said, adding that this has pushed up domestic prices slightly.

Thailand’s 5% broken rice was unchanged from last week at $380-$385 per tonne, traders said. Although the dollar is weak, prices should rise, but there are still no buyers so rates have been kept low, said a Bangkok-based trader, adding that supply has been gradually entering the market.

Demand has been steady, with regular customers from India, America and Latin America buying, said another trader. The yield from the August harvest should be strong from good water levels, the trader added.