Senegal import pause pressures Indian 100% broken rice: Platts
Senegal’s one-month halt on rice import declarations has pressured Indian 100% broken white rice prices, with demand “dried up” and shipments likely diverted. Senegal paused imports due to surplus stocks, harming local farmers. India’s increased brokens availability and reduced ethanol allocation are adding bearish pressure, though feed demand supports Pakistan’s market.
SENEGAL- India’s 100% broken white rice prices are under pressure following Senegal’s decision to halt rice import declarations for one month, according to the latest update from Platts, part of S&P Global Commodity Insights.
Platts assessed Indian 100% broken at US$298/MT on Nov. 20, down US$6 /MT month on month, as shipments destined for Dakar face potential diversion to other markets amid the suspension.
Senegal, which imports approximately 1.65 million mt of milled rice annually to cover about 70% of its domestic demand, paused imports to reduce local oversupply.
Stocks have climbed from three months to six months of cover, leaving domestic farmers struggling to sell their crops.
“Senegal used to hold a three-month stock but now has a six-month stock due to imported rice,” a Dakar-based trader told Platts.
India’s exports to Senegal had risen to 230,194.76 MT in the first five months of FY2025, up 25% year on year.
The Ministry of Commerce and Industry in Senegal has set an ex-factory price of CFA350/kg to protect farmers while keeping prices reasonable for consumers.
Traders in Delhi noted that the import pause has “dried up” demand, with shipments en route from India likely to be redirected elsewhere, potentially softening brokens prices further.
Domestic factors in India are also weighing on prices. Allocation of broken rice for ethanol production has declined under revised government policies, while new procurement rules for custom-milled rice are expected to raise brokens availability by around 15%, according to market participants.
An ethanol producer in Karnataka said, “Prices for broken rice will correct more,” as more rice is allocated for sugar- and corn-based ethanol.
Meanwhile, while Senegal is one of the destination markets for 100% broken for India and Pakistan, China is also a major buyer of 100% broken WR from Pakistan.
The pause came amid Thailand-China’s MOU, in which China committed to purchasing 500,000 MT of Thai rice, further weakening demand prospects for Pakistan.
“While weak sentiments were heard for 100% broken rice due to Senegal’s import policies, current demand from the domestic feed market was keeping spot prices stable in Pakistan, a Karachi-based trader said.
Domestic feed demand is supporting the market, with local broken rice trading between Rupees 83.5/kg and 84/kg, equivalent to US$322/MT FOB on the lower side. Platts assessed Pakistani 100% broken white rice at US$312/MT FOB on Nov. 20, up US$13/MT month on month.
Senegal expected to loosen restrictions eventually
Traders in Dakar expect Senegal’s import halt to last only the one-month period. Authorities need to maintain sufficient stocks ahead of Ramadan, when broken rice demand typically rises.
“I do not believe that they will keep the halt for too long as they have to ensure that there are sufficient stocks in the country for Ramadan,” the trader said.
While Senegal mainly imports broken rice from India due to competitive pricing, small quantities of fragrant rice are also imported for high-income consumers.
Globally, India is forecast to export 24 million MT of rice in MY 2025-26, up 7% year on year, according to S&P Global Energy CERA.
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Source : Milling MEA
