Asia rice: Weak demand, high supplies push Indian prices to lowest since June 2023

BENGALURU/ MUMBAI/BANGKOK/HANOI AND BANGLADESH: Indian rice prices fell this week to their lowest level since June 2023 on sluggish demand and ample supplies, while Thai rice export prices held steady near an over two-year low.

India’s 5% broken parboiled variety was quoted at $395-$401 per tonne, down from the last week’s $403-$410. “Buyers are slowly making purchases and some are even delaying buying as prices are coming down,” said a New Delhi-based dealer with a global trade house. India earlier this month allowed the export of 100% broken rice, which had been banned since September 2022.

Thailand’s 5% broken rice hovers around $405 per tonne on Thursday, the same price quoted last week.

Traders indicated that the primary factors maintaining the price of rice this week are the lack of demand and the exchange rate. They noted the supply situation remains unchanged with ample amount entering the market.

“The market has been quiet,” said a Bangkok-based trader, adding “the fierce competition from India and Vietnam mean that this year could be tough for Thai exporters.”

Vietnam’s 5% broken rice was offered at $400 per metric ton, up from last week’s $394, according to the Vietnam Food Association and traders.

“The price may stay at this level for the next few sessions amid healthy supplies,” said a trader based in the rice bowl of Mekong Delta.

The Vietnamese government has launched a series of measures to support trading firms including offer preferential financing and implementing national reserve purchases amid weaker rice export price. Meanwhile, Bangladesh plans to lift the ban on aromatic rice exports in a move aimed at boosting trade, officials said.

As the world’s third-largest rice producer, Bangladesh primarily consumes most of its rice domestically.