MUMBAI, HANOI, BANGKOK AND BANGLADESH: Indian rice export prices extended declines to a 17-month low this week on depreciation in rupee to a record low, and demand remained muted in key hubs during the holiday period.
Top exporter India’s 5% broken parboiled variety was quoted at $439-$445 per ton this week, down from the last week’s $440-$446. While, Indian 5% broken white rice was quoted $446-$453 per ton.
“This week, exporters adjusted prices considering the fall in the rupee. Demand was subdued because of Christmas vacations,” a New Delhi-based dealer with a global trade house said. The Indian rupee hit a record low against the dollar this week, effectively increasing the margins of exporters.
Meanwhile, Bangladesh continues to import rice from India through tenders as part of its efforts to strengthen reserves. Floods in Bangladesh in August and October caused massive damage to crops, prompting the country to expand imports of the staple grain amid soaring food prices. Elsewhere, prices slipped in Thailand and Vietnam as activity slowed during the holiday period.
Thailand’s 5% broken rice was quoted at $502 per ton, down from last week’s $512. The supply situation currently remains unchanged, a Bangkok-based trader said. However, Thai traders expect further price decreases after the New Year due to an increase in the global supply of rice from India.
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