Vietnamese rice prices rose this week as domestic supplies tumbled, while Indian rates also ticked higher on rupee appreciation and improved demand.
Vietnam’s 5% broken rice was offered at $399 per metric ton on Thursday, up from $395 a week ago, according to the Vietnam Food Association.
“Prices are higher as domestic supplies are running low,” a trader based in Ho Chi Minh City said.
Traders added that Vietnam’s efforts to boost production of fragrant rice and rice of higher quality over the recent years have helped offset the plans to suspend rice imports by the Philippines, which has appetite for common white rice.
Vietnam exported 364,624 tons of rice in the first half of this year, raising total shipments in the year to August 15 to 5.88 million tons, an increase of 3% from a year earlier, according to official data.
India’s 5% broken parboiled variety was quoted at $371-$376 per ton, up from the last week’s $369-$374 while Indian 5% broken white rice was priced at $363 to $369 per ton this week on rupee appreciation and improved demand.
Asia rice: Vietnam rates rise on Philippine stockpiling; India prices steady
“Buying is improving at a lower price level (while) prices are moving higher to adjust for the movement in currency,” said a Kolkata-based dealer.
Thailand’s 5% broken rice moved up slightly to $365 to $370 per tonne from $355 to $360 per tonne last week, but more global supply was still pressuring prices, traders said.
Indonesia announced good yields and that it would reduce imports, while the Philippines will not import 2-month old rice, said a Bangkok-based trader, adding that India said it would release its stockpile.
Globally, supply is good in every country and it’s making exporters struggle, said another trader.
Thailand’s cabinet approved measures worth 106 billion baht ($3.26 billion), which include direct payments and loan guarantees, to support rice farmers and stabilise prices, an official said on Tuesday.
Meanwhile, Bangladesh’s rice imports rose to a seven-year high of 1.44 million tons in the last fiscal year ending in June, as flood damage cut domestic output — the largest volume since 2017/18 financial year, when imports reached 3.16 million tons, official data showed.
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