Prices of rice exported from India and Vietnam dipped this week as supplies increased, although the Vietnamese market was expected to see fresh orders from China, Bangladesh, Iran and Sri Lanka in coming months.
Rates for top exporter India’s 5% broken parboiled variety were quoted at $361 to $365 per tonne, down from last week’s $364-$368, also weighed down by a weaker rupee , which generally increases traders’ margin from overseas sales.
“Demand is good, but prices are coming down because of rupee. Supplies have also improved in the last few weeks,” said an exporter based at Kakinada in southern state of Andhra Pradesh.
Vietnam’s 5% broken rice was offered at $415 per tonne on Thursday, down from $420-$425 last week, amid ample domestic supplies with farmers in the Mekong Delta having harvested about 90% of their winter-spring crop.
State media reports cited the Vietnam Food Association as saying exports are expected to pick up in the coming months, with stronger demand from such markets as China, Bangladesh, Iran and Sri Lanka.
Preliminary shipping data showed 291,690 tonnes of rice is to be loaded at Ho Chi Minh City port in April, with most of it heading to the Philippines and Cuba.
Thailand’s 5% broken rice prices rose slightly to $410-$414 per tonne from $408-$412 two weeks ago, with traders saying that while the market saw small purchases, activity was muted overall.
The country exported 1.1 million tonnes of rice between January and February this year, up 29% from the same period last year, according to data from the commerce ministry released earlier this month.
In Bangladesh, domestic rice prices stayed elevated despite good reserves on the back of good crops and hefty imports, while the government offers subsidised grain to poor people.