Asia rice: Indian rates hit 10-month high as weather concerns grip major hubs

MUMBAI, DHAKA, BANGKOK, HANOI AND BENGALURU; Indian rice export prices rose to a near 10-month high this week, driven by tight paddy supplies and concerns over the new-season crop after patchy monsoon rainfall, with adverse weather keeping traders on edge in major Asian hubs. India’s 5percent broken parboiled variety was quoted at USD356-USD361 per ton, up from last week’s USD352-USD357.

Indian 5percent broken white rice was priced at USD355 to USD360 per ton. “Paddy prices have risen as market supplies remain tight. Exporters are raising their offers to reflect higher procurement costs,” a Kolkata-based trader said.

Thailand’s 5percent broken rice was quoted at USD450 to USD460 per ton, slightly higher from USD445-USD450 last week. “The price increase was driven by domestic factors,” a Bangkok-based trader said. “Only regular customers were making purchases, with no large lots coming in yet, while spot or occasional buyers are purchasing less,” the trader said, adding that there were also concerns about the upcoming crop yields.

Another trader said that demand has been quiet while the supply situation would be more clear next month. In Bangladesh, rice prices have risen over the past week, especially for fine varieties, amid concerns over tightening supplies after successive weather-related shocks.

Traders cited higher paddy prices and recent flood damage, which affected crops across at least 28,610 hectares in 12 districts, including paddy fields and rice seedbeds. Earlier this year, heavy pre-monsoon rains and upstream inflows damaged the country’s summer rice crop in the northeastern wetlands, leaving it with an estimated rice production shortfall of more than 200,000 metric tons. Meanwhile, in Vietnam, 5percent broken rice was offered at USD430 on Thursday, down from a range of USD445-USD450 last week. “Supplies are building up from the ongoing summer-autumn harvest,” a trader based in Ho Chi Minh City said, noting that around one-third of the summer-autumn crop had been harvested.