Asia rice: Surplus supply, dwindling demand push India’s prices lower

BENGALURU/MUMBAI/HANOI: Parboiled rice export prices in top hub India recorded a fifth consecutive week of declines on surplus fresh supplies, a weaker rupee and decreased demand following New Delhi’s move to extend duty on the rice variety.

India’s 5% broken-parboiled rice prices fell to $490 to $500 per metric ton from $495 to $505 last week.

“The new crop in the northern states is piling up, which is pushing down paddy prices. Exporters are also getting help from a weak rupee, which is making it easier for them to lower their export prices,” said a Mumbai-based exporter.

India earlier this month extended a 20% duty on exports of parboiled rice until March 2024. The country’s rice production is expected to decrease for the first time in eight years, raising prospects that Prime Minister Narendra Modi’s government will extend curbs on exports of the grain to control food prices ahead of elections.