Prices of parboiled rice exported from India climbed to over two-month highs this week, following higher rates in other hubs, as traders in Vietnam and Thailand stare at improved demand in the face of limited supplies.

The 5% broken parboiled variety was quoted at $510-$517 per metric ton, their highest level since late October 2023, versus last week’s $508-$515.

“Local paddy prices remain strong despite export restrictions. Supplies have begun to moderate in markets due to lower production,” said an exporter at Kakinada, Andhra Pradesh.

State-run agencies have procured 46.39 million tons of paddy so far in the current marketing year, down from last year’s 53.40 million tons.

Thailand’s 5% broken rice prices were quoted at $650 per metric ton, down from last week’s $655-$660, when prices rose to their highest levels since 2008.

While there was some demand from Indonesia and the Philippines, no more fresh supplies were expected until the next harvest, said a Bangkok-based trader.

Asia rice: India plays catch-up as Vietnam rates rally to highest since 2008

“Prices are holding steady and can still go up,” the trader said, adding that India’s ban meant that any trades were based on government-to-government deals.

In Vietnam, the 5% broken rice was offered at $653 per metric ton, unchanged from last week.

“Supplies remain low and we anticipate demand for Vietnamese rice will be strong this year, particularly from the Philippines and China,” a Ho Chi Minh City-based trader said.

Vietnam’s rice exports in 2023 are estimated to have risen 17.4% from a year earlier to 8.34 million metric tons, a record high.

Preliminary shipping data showed 44,150 tons of rice to be loaded at Ho Chi Minh City port during Jan 1-10, with most heading to the Philippines.