White rice price dips as India lifts ban
The price of Thai white rice has declined after India resumed non-basmati white rice exports, adding 5-6 million tonnes to global supply. Thailand’s 5% broken rice dropped to USD 520 per tonne. While Thailand is expected to meet its 2024 export target of 8.5 million tonnes, increased Indian production may lower future exports.
The domestic price of Thai white rice has begun to decrease following India’s resumption of non-basmati white rice exports.
However, this shift has yet to affect this year’s rice export volume, according to Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association.
Mr Chookiat said on Sept 28 the Indian government lifted a ban on the export of non-basmati white rice of more than a year, with a larger crop yield in 2024 bolstering state warehouse reserves for domestic supply.
India also cut the export duty on parboiled rice to 10% from 20%.
On Monday, India’s 5% broken white rice was offered at around US$490.
“Buyers and sellers are evaluating the potential impact of increased Indian rice supplies and are uncertain about the actual sales price of Indian rice exporters,” he said.
Lifting the export ban increased the global supply of white rice by up to 5-6 million tonnes.
Thailand’s 5% broken rice tumbled to $520 per tonne from $550 last week, while milled white rice fell to 15,300 baht per tonne from 16,500-17,000.
Thailand is expected to reach its export target of more than 8.5 million tonnes of rice this year, dipping to only 6 million tonnes next year as India is projected to produce up to 138 million tonnes.
Thailand’s rice export prices could decline given higher supply in the market, but the decrease would depend on several factors, said Mr Chookiat.
Rice exports in the first eight months of 2024 tallied 6.57 million tonnes, up 1.28 million tonnes or 24% year- on-year.
Requests for permission to export rice with the Foreign Trade Department in September remained at normal levels.
Source Link : https://www.bangkokpost.com/business/general/2878751/white-rice-price-dips-as-india-lifts-ban
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