Asia rice: New season supplies keep India, Vietnam rates at multi-month lows

BENGALURU/ MUMBAI/HANOI/BANGKOK AND BANGLADESH: Prices of rice exported from India extended their slide to their lowest level in over 19 months this week and Vietnam’s rates slipped to a two-year low, with an influx of fresh harvest supplies and delayed purchases.

India’s 5% broken parboiled variety was quoted at $416-$425 per metric ton this week, down from last week’s $418-$428. Indian 5% broken white rice was quoted at $395 to $405 this week. “There is a slowdown in purchases from African buyers. Since prices are continuously decreasing, they are waiting for them to stabilize,” said a Kolkata-based exporter. The Indian rupee hit a fresh record low this week, effectively increasing trader’s margins from overseas sales.

Vietnam’s 5% broken rice was offered at $397 per metric ton on Thursday, down from $404 a week ago before Vietnamese markets were closed for the Lunar New Year holidays, according to the Vietnam Food Association. Prices were at their lowest level since September 2022. Traders said prices fell further as buyers are not rushing to sign new contracts expecting stronger supplies.

“Vietnam’s winter-spring harvest is about to begin in the Mekong Delta, while India’s supplies are strong,” a trader based in Ho Chi Minh City said. Thailand’s 5% broken rice was unchanged from last week at $415 to $420 per tonne.

Demand has been very quiet, said a Bangkok-based trader, adding that prices were pressured with production in India and Vietnam being strong. Regular customers are delaying purchase decisions because prices are coming down and are only buying when necessary, another trader said.

Meanwhile, Bangladesh is purchasing 50,000 tons of parboiled rice at $434.77 per ton through an international tender to boost its reserves and stabilize rice prices.