Asia rice: India rates slide to near 2-year low on weak rupee, lower demand

BENGALURU, MUMBAI, BANGKOK AND DHAKA: Indian rice export prices dropped to a near two-year low this week, weighed down by weaker demand and depreciation in the rupee, while Thai rates rose to a more than two-month peak.

India’s 5% broken parboiled variety was quoted at $384-$391 per metric ton, down from the last week’s $390-$397. Indian 5% broken white rice was priced at $378 to $385 per ton this week.

“This week rupee again started losing against the dollar, which helped traders to lower export prices.

Demand is still weak from African buyers,” said a Kolkata-based exporter. Global rice prices, which have tumbled to multi-year lows, are unlikely to fall further, but bulging Indian stockpiles and a bumper Asian crop will cap any rebound this year, industry executives say.

Thailand’s 5% broken rice rose to $420 per ton from $410 quoted in the last two weeks due to baht appreciation, but demand was still quiet, according to traders.

There have been no big purchases yet, but the conflict between India and Pakistan could affect supply, said a Bangkok-based trader. Supply in Thailand is expected to be good this year because of favourable water levels, the trader said.

Meanwhile, Vietnam’s 5% broken rice was offered at $398 per ton on Thursday, slightly up from $395 two weeks ago, according to the Vietnam Food Association. Vietnamese markets were closed last week for national holidays. “The government’s move to buy rice for stockpiling has supported prices a bit, but generally, demand remains weak and so is trading activity,” a trader based in Ho Chi Minh City said. Government data released earlier this week showed Vietnam’s rice exports in the first four months of this year rose 8.4% from a year earlier to 3.43 million metric tons.