A nationwide lockdown in leading rice exporter India to curtail the spread of the coronavirus pushed export prices to the lowest in about three months, while rates for the Thai variety came off multi-year peaks due to fluctuations in the local currency.
Health researchers have warned that more than a million people in India could be infected with the coronavirus by mid-May, prompting the government to order a 21-day lockdown and shut down all air and train travel, businesses and schools.
India's 5% broken parboiled variety rates narrowed to $361-$365 per tonne this week - their lowest since late December - as rice exporters were struggling to operate due to the lockdown.
Prices slipped from last week's $363-$367 range. The entire supply chain has been disrupted by the lockdown, said BV Krishna Rao, president of the Rice Exporters Association.
Indian rupee hit a record low this week, raising exporters' margin from the overseas sale. In Thailand, benchmark 5% broken rice rates fell to $468-$495 on Thursday, from last week's 6-1/2-year peak of $480-$505.
The drop in price was due to fluctuations in the currency, while the situation over demand-and-supply remained relatively unchanged, traders said.
The Thai market remained cautious over supply issues, triggered by one of the worst droughts in decades that is hurting many rice-growing areas, while traders said the outbreak has also slightly raised domestic demand of some types of rice, keeping prices higher.
The Thai government has declared a state of emergency across the country over the coronavirus, but is yet to issue any restrictions that would directly impact agricultural production or exports.
"There won't be any shortage of rice through the crisis, but prices are likely to remain high due to concerns over supply," a Bangkok-based trader said, adding prices could go even higher if there is overseas demand given that Vietnam has stopped exports.