Asia rice: Sluggish demand, harvest supplies weigh on rates across top hubs

BENGALURU / HANOI / MUMBAI / BANGKOK / DHAKA: Asian rice export markets remained subdued this week with Indian and Vietnamese prices holding steady and Thai rates easing slightly on sluggish demand and rising supplies from new season harvests.

India’s 5percent broken parboiled rice was quoted at USD344-USD350 per tonne this week, unchanged from the previous week, while its 5percent broken white rice was priced at USD350-USD360 per tonne. “Paddy harvesting is gaining momentum as weather is now dry across the country and supplies are rising,” said a Kolkata-based trader. Vietnam’s 5percent broken rice was offered at USD415-USD430 per ton on Thursday, unchanged from a week ago, according to the Vietnam Food Association.

Traders said a small harvest is ongoing in the Mekong Delta province, which could also exert downward pressure on prices. Government data on Thursday showed rice exports from Vietnam in October dropped 56.2 percent year-on-year to 344,000 tonnes, while shipments for the January-October period fell 7.5 percent to 7.17 million tonnes. Thailand’s 5percent broken rice was quoted at USD338 per tonnes on Thursday, slightly down from USD340 quoted last week. Demand for Thai rice has been relatively muted contributing the slight price drop this week, a Bangkok-based trader said.

Another trader said that supply remains plentiful. On Tuesday, the Thai cabinet approved a draft agreement with Singapore for the sale of 100,000 tonnes of rice over five years, according to government official.

Meanwhile, Bangladesh has authorized the private import of an additional 100,000 tonnes of rice, a food ministry official said, as the rice price stays high, following a previous approval for 500,000 tonnes by October 30.

The lowest price offered in a tender by Bangladesh’s state grains buyer to purchase 50,000 tonnes of rice, which closed on Thursday, was USD355.59 per tonne CIF liner out, traders said.