Asia rice: Currency moves buoy Indian, Thai prices but demand still lags

BENGALURU, MUMBAI, BANGKOK, HANOI AND DHAKA: Prices of rice shipped from India and Thailand edged higher this week, aided by currency fluctuations, although gains were capped by subdued demand, while Vietnamese rates were little changed. Indian rice prices recovered from a 22-month-low, with the 5% broken parboiled variety being quoted at $389-$396 per metric ton, up from the last week’s $388-$394. Prices were helped as the Indian rupee rose slightly versus the US dollar.

Indian 5% broken white rice was priced at $382-$388 per metric ton this week. Buyers from Africa “are on the sidelines. They are trying to clear high cost imports made a few months back,” said a Kolkata based exporter. India’s state reserves of rice, including unmilled paddy, totalled a record 63.09 million tons as of April 1, far exceeding the government’s target of 13.6 million tons. Meanwhile, Thailand’s 5% broken rice rose to $410 per ton up from $405 quoted last week due to exchange rates. Price rose due to currency rates, said a Bangkok-based trader.

However, “demand has been very very quiet. It’s worrying,” the trader said, adding that supply this year has been very good, but the problem was with orders. Vietnam’s 5% broken rice was offered at $395 per metric ton on Thursday, little changed from $396 a week ago, according to Vietnam Food Association.

“Demand from buyers hasn’t picked up,” a trader based in Ho Chi Minh City said, adding that domestic supplies are low. Traders said the government will buy 220,000 tons of rice by the end of June for national reserve. Elsewhere, Bangladesh has begun purchasing 1.7 million tons of rice from local farmers during the current harvesting season to boost its reserves, according to officials from the Food Ministry.