Asia rice: Indian prices hit more than one-year high on strong rupee, tight supply

MUMBAI, DHAKA, BANGKOK, HANOI AND BENGALURU: Indian rice export prices rose further this week to their highest level in more than a year, supported by a stronger rupee and modest demand amid tight supplies. India’s 5 percent broken parboiled variety was quoted at USD387-USD392 per ton this week, up from last week’s USD384-USD389. Indian 5 percent broken white rice was priced at USD389 to USD394 per ton.

The rupee has appreciated steadily over the past few days, prompting traders to raise export prices to reflect the exchange-rate movement, said a Kolkata-based exporter.

The country’s rice production is set to fall this year for the first time in a decade, and by the most in nearly 20 years, as below-normal rainfall during the crop’s maturation period threatens to cut yields, industry officials told Reuters.

Vietnam’s 5 percent broken rice was offered at USD440-USD450 per metric ton on Thursday, flat from a week ago.

External demand remains stable, and we expect more orders from the Philippines coming in from mid-November, a trader based in Ho Chi Minh City said.

Vietnam exported 228,871 tons of rice in the first half of October, raising its total shipments this year to October 15 to 6.6 million tons valued at USD3.2 billion, according to the government’s customs data. In Thailand, 5 percent broken rice was quoted at USD480 per ton, unchanged from last week, traders said.

“Demand (is) coming from the Philippines. There are also vessels arriving to load rice, which has pushed prices up slightly,” a trader said.

“Supply is currently being harvested in some areas, so we need to wait and see the impact on production once the floodwaters recede,” the trader added.

Rice prices in Bangladesh remained elevated amid rising fuel costs, while aromatic rice prices surged despite the government’s decision to cut approved export quotas by 50 percent.

The price hikes have added to the financial burden on consumers already struggling with persistently high inflation.