Asia rice India’s export rates stagnant as market faces slow demand

BENGALURU, MUMBAI, HANOI, BANGKOK AND DHAKA: Indian rice export prices were little changed this week, pressured by sluggish demand from buyers in Africa amid a depreciation of the rupee to a record low.

India’s 5percent broken parboiled variety was quoted this week at USD333-USD340 per ton, unchanged from last week. Indian 5percent broken white rice was priced at USD335 to USD340 per ton this week. Indian prices are the lowest among key rice exporting countries but still export demand is not picking up, said a New Delhi-based trader.

The rupee fell to an all-time low, pressured by stubbornly high oil prices and persistent portfolio outflows that have strained the current and capital balances of Asia’s third-largest economy. Vietnam’s 5percent broken rice was offered at USD395-USD400 per metric ton on Thursday, unchanged from a week ago.

“Domestic supplies are getting thinner, but we are concerned about the Philippines’ move to impose a ceiling price on imported rice,” a trader based in Ho Chi Minh City said.

“The Philippines remains Vietnam’s key rice buyer and any move it makes will have an impact,” the trader added.

Meanwhile, Thailand’s 5percent broken rice was quoted at USD415 per ton on Thursday, rising from USD404-USD405 quoted last week. Traders said the price increase was driven mainly by millers holding back sales amid firmer domestic sentiment.

Demand remains relatively quiet, with no major deals reported, although regular customers from Hong Kong and African markets continued to place small orders, a Bangkok-based trader added. Supply conditions in Thailand were largely unchanged, as the new crop is currently being planted during this period and the market is waiting to see the size of the upcoming harvest in the coming months.