Asia rice: India plays catch-up as Vietnam rates rally to highest since 2008

BENGALURU/MUMBAI/HANOI/BANGKOK: Prices of parboiled rice from top exporters climbed this week, fuelled by limited supplies, pushing Vietnamese rates to their highest in more than 15 years, and in turn driving up the less expensive Indian variety to its highest in two months.

Vietnam’s 5% broken rice was offered at $660 to $665 a metric ton on Thursday, its highest since mid-July 2008, versus $655 to $660 last week. “Prices edged higher on tight supplies,” said a trader based in Ho Chi Minh City.

Preliminary shipping data showed 162,800 tons of rice to be loaded at Ho Chi Minh City port from Dec 1 to 20, with most of it heading to Indonesia, the Philippines and Cuba.

The prices of India’s exports rose in line with the upward trend in other exporters and concerns over production. India’s 5% broken parboiled variety was quoted at $505 to $512 a metric ton this week, its highest in two months, up from last week’s range of $499 to $506.

“Due to widening gaps between Indian prices and those of other countries, buyers are now willing to accept higher prices,” said an exporter in the eastern city of Kolkata.