BENGALURU, HANOI, MUMBAI, BANGKOK AND DHAKA: Thai rice export prices fell to their lowest in nearly nine years this week weighed down by sluggish demand, while Indian prices held steady after hitting a three-year low in the previous week.
Thailand’s 5percent broken rice was quoted at USD350 per tonne, its lowest level since November 2016, and down from USD360 quoted last week. Traders attributed the decline in prices largely to ample rice supplies that have entered the market and weak demand.
Relatively high prices of Thai rice, compared to competitors, have pushed buyers away, a Bangkok-based trader said, adding that Thai exporters have only been able to sell to regular buyers, with others opting for cheaper options from competitors like India and Vietnam. India’s 5percent broken parboiled variety was quoted this week at USD354 to USD362 per ton, unchanged from the previous week when it hit a three-year low. Indian 5percent broken white rice was priced at USD369 to USD375 per ton this week.
Falling prices have been prompting buyers to postpone their purchases, hoping they would fall further, said a Mumbai-based trader. India’s rice stocks in government warehouses climbed over 14 percent from a year earlier to a record high for early September, official data showed earlier this week. Vietnam’s 5percent broken rice was offered at USD440-USD465 per ton on Thursday, widening from the range of USD450-USD455 a week ago, according to the Vietnam Food Association.
Traders said trading activity is slow as supplies are low. “We are hearing that the Philippines might consider extending its 60-day rice import suspension by 15 to 30 days, putting more pressure on prices of rice from Vietnam,” a trader based in Ho Chi Minh City said. Domestic rice prices in Bangladesh remain elevated, with current retail rates still tracking 15–20percent higher than a year ago.
Market insiders fear India’s new conditions on rice exports have further complicated the situation, limiting Dhaka’s ability to source cheaper grain from its largest supplier. India has amended its export policy for non-basmati rice, including an additional condition that permits export of the grain only after registration of contracts with the state-run agency.
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