Rice prices drop in top hubs as supply surges after Indian export relaxations

BENGALURU/MUMBAI/BANGKOK/HANOI AND BANGLADESH: Rice prices across major Asian hubs declined to their lowest in more than a year this week, pressured by slow demand and increased supply after top exporter India recently eased restrictions on exports of the staple.

India’s 5% broken parboiled variety was quoted at $490-$495 per metric ton this week, the lowest since Aug. 24, 2023, amid weak demand and depreciation in the rupee. Last week, traders were offering rice between $494-$498.

“Both white and parboiled rice aren’t selling well right now. Buyers just aren’t comfortable with the current prices, especially after the minimum export price kicked in,” said a Kolkata-based exporter. India last month cut export duty on parboiled rice to 10% and allowed exports of non-basmati white rice at a floor price of $490 per metric ton. “Prices edged lower on strong supplies on the global market after India relaxed its export restrictions,” a trader based in Ho Chi Minh City said.

Vietnam’s 5% broken rice was offered at $538 per ton on Thursday, compared to $552 a week ago, according to the Vietnam Food Association. Prices are at their lowest since July 2023. Vietnam Food Association chairman Nguyen Ngoc Nam said on Thursday the country’s rice exports this year would be higher than 7.6 million tons.

Vietnam’s rice shipments in the first nine months of the year rose 8.9% to 6.99 million tons from a year earlier, according to government trade data.

Thailand’s 5% broken rice fell slightly to $510 per ton from last week’s range of $510 to $515 and were at their weakest since June 2023. Demand has been quiet because buyers were slowing their purchases after India lifted the export ban, a Bangkok-based trader said. Supply at the end of harvest season is expected to be good this year, another trader said.

Meanwhile, prices in Bangladesh are likely to rise further as another spell of floods in the northern region threaten crop production, traders said.