BENGALURU: Indian rice export prices were steady this week amid subdued demand due to higher freight rates and currency volatility, while Vietnamese rates edged up on narrower supplies and higher cost of production.
India’s 5 percent broken parboiled variety was quoted this week at USD341 to USD348 per metric ton, unchanged from last week. Indian 5 percent broken white rice was priced at USD336 to USD341 per ton this week.
“Demand is very weak from African buyers because of higher freight rates,” said a Kolkata-based exporter.
Vietnam’s 5 percent broken rice was offered at USD375 per metric ton on Thursday, up from USD350 to USD355 a week ago, according to traders.
“Domestic supplies are narrowing as the winter-spring harvest is entering the final stage,” a trader based in Ho Chi Minh City said.
Traders said higher rice production cost, driven by the impacts of the Middle East conflicts, has also pushed up rice export prices.
“The rise in fuel prices have driven up the cost for rice harvesting, transporting and processing,” the first trader said.
Meanwhile, Thailand’s 5 percent broken rice was quoted at USD370 to USD375 per ton, up from USD365 last week.
The slight increase is mainly due to exchange rate movements, a Bangkok-based trader said, adding that demand is sporadic, coming from Europe and parts of Asia outside the Middle East.
Freight costs have also increased, making exporters hesitant to sell large lots as they wait for more clarity, the trader said, adding that new output is gradually coming in and should be sufficient to meet demand.
Elsewhere, rice prices in Bangladesh have remained elevated despite strong harvests and adequate reserves, placing a heavy burden on consumers already struggling with inflation and rising living costs.
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