Rates drop across major hubs as supply surges, demand stalls

BENGALURU/ MUMBAI/BANGKOK/DHAKA AND HANOI: Rice prices across major Asian hubs declined this week, weighed down by weaker demand and higher supplies, with Indian rates extending their fall to their lowest level in two years.

India’s 5% broken parboiled variety was quoted at $378-$384 per ton, down from the last week’s $380-$386. Indian 5% broken white rice was priced at $372 to $377 per ton this week. “Demand has been very weak for the past few weeks, even after we lowered prices. Supply is ample,” said a Kolkata-based trader.

India’s state reserves of rice, including unmilled paddy, totalled a record 59.5 million metric tons as of June 1, far exceeding the government’s target of 13.5 million tons for July 1. Thailand’s 5% broken rice fell to $398 per tonne, from $410 quoted last week, on currency volatility and weak demand, according to traders. “Prices fell on the weak baht and limited demand,” said a Bangkok-based trader.