Prices of parboiled rice exported from India fell this week as the rupee depreciated and supplies increased, while Vietnamese rates edged lower on fears of a potential drop in demand from the Philippines.
Top exporter India’s 5% broken parboiled variety was quoted at $440-$446 per metric ton this week, down from last week’s $444-$450. Indian 5% broken white rice was quoted at $447 to $455 per metric ton this week.
The Indian rupee hit a record low against the dollar on Thursday, effectively increasing the margins of exporters.
“The rupee is depreciating rapidly, and we are adjusting prices to account for changes in the currency. Demand remains steady,” said a New Delhi-based dealer with a global trade house.
Vietnam’s 5% broken rice was offered at $495-$508 per metric ton, compared with last week’s $509, according to traders and the Vietnam Food Association.
“Prices edged down further after Philippines’ Department of Agriculture signalled to buy rice from India and Pakistan,” said a trader based in the Mekong Delta region.
Asia rice: Indian export prices fall; Vietnam, Thailand demand muted
“Trading activities in general this week are quite tame.” The Philippines has been one of Vietnam’s biggest rice importers.
Thailand’s 5% broken rice was quoted at $512 per metric ton compared with last week’s range of $510-$515.
Rice traders attributed the slight price fluctuation to the currency exchange as demand remained flat due to the approaching holiday season.
Supply situation was also unchanged, according to a Bangkok-based rice trader.
One trader expects prices of rice to drop after the New Year due to an increase of global supply from India.
Meanwhile, Bangladesh is importing 100,000 tonnes of white rice from Myanmar through a state-to-state deal at $515 per tonne, in an effort to control rising prices.
Bangladesh is also importing parboiled rice, mainly from India, through tenders.
Despite holding substantial reserves of nearly 1.2 million tonnes of food grains, including 742,000 tonnes of rice, Bangladesh government is struggling to curb escalating prices.
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