Asia rice: India prices near 10-month high on supply concerns

BENGALURU: Indian rice export prices held near a 10-month high this week, underpinned by rising domestic paddy prices and concerns El Niño could tighten supply, while Thai prices hit a one-month peak. India’s 5percent broken parboiled variety was quoted at USD358 to USD364 per metric ton, unchanged from last week, while 5percent broken white rice was priced at USD357 to USD363 per ton.

“Supply concerns caused by El Nino are supporting prices. Buyers are continuing to purchase despite the rise in prices,” said a New Delhi-based dealer with a global trade house. Indian rice exports rose 5percent in the first half of 2026, as higher shipments of non-basmati rice offset a drop in basmati exports after the Iran war disrupted trade with Gulf markets.

Thai 5percent broken rice was quoted at USD455 to USD460 per ton, from USD450 last week, a Bangkok-based trader said. “There are regular customers in the Asian region like Singapore and Malaysia buying only as much as necessary. As for Indonesia, their production is sufficient,” the trader said.

“On the supply side, output is gradually coming in from the central provinces. The outlook is that by the end of this year, rice exports will definitely decline,” the trader added.

Vietnam’s 5percent broken rice was offered at USD430 to USD450 per ton on Thursday, unchanged from a week ago, with a trader based in Ho Chi Minh City saying trading activity was quiet due to weak demand. Vietnam’s Food Association said this week it was seeking to impose floor prices for rice exports and domestic fresh paddy to protect producers and exporters from price manipulation.

The association said it wanted to set a floor export price of USD500 per ton, free on board, for fragrant rice and a 7,000-dong floor price for domestic unhusked fresh paddy. Rice prices in Bangladesh remained elevated after two rounds of flooding damaged rice crops and disrupted production.

Agriculture officials said the government is developing new climate-resilient rice varieties to help farmers cope with the growing challenges of climate change.