BENGALURU/HANOI/MUMBAI/BANGKOK AND DHAKA: Vietnam’s rice rates fell to a near five-year low this week on weak demand and a push for higher-quality production, while India’s demand stayed muted as buyers chose cheaper rivals even as parboiled prices rose to a six-week high with government procurement underway.
Vietnam’s 5percent broken rice was offered at USD350 to USD355 per metric ton on Thursday compared to USD415 to USD430 last week, traders said, its lowest level since January 2020.
“Weak external demand has pushed down prices significantly, and this will force Vietnam to restructure its rice production, switching from quantity to quality,” a trader based in Ho Chi Minh City said. “Key buyers such as the Philippines and Indonesia are making moves to boost their domestic production to reduce their reliance on imports,” the trader said, adding that Vietnam’s main buyers are now African countries. Vietnam exported 159,122 tons of rice in the first half of November, down 46percent from the same period last year, according to Vietnamese customs data.
India’s 5percent broken parboiled rice was quoted at USD352–USD360 per ton this week, up from USD344 to USD350 last week, hitting its highest since October 2. The 5percent broken white rice variety was priced at USD350 to USD355 per ton.
“Export demand is still weak, with African and Asian buyers finding other origins more competitive,” said Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter.
“As government rice procurement begins, local prices are expected to stay firm, further straining export prospects.” Thailand’s 5percent broken rice was quoted at USD340 per metric ton, up from USD335 last, edging higher from an 18-year low. Buyers are only ordering what is needed, said a Bangkok-based trader.
After India announced more rice exports, buyers were holding back to see prices, which made the Thai rice market quiet, the trader said, adding that supply was good in every country.
Meanwhile, Bangladesh has approved the purchase of 50,000 metric tons of parboiled rice at USD354.19 per tonne through a tender, as part of its effort to bring down domestic rice prices.
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