Indian rice export prices stay near one-year high as rupee weakens
Indian rice export prices remained near a one-year high, with 5% broken parboiled rice at $378–384/tonne, supported by rupee depreciation and rising paddy costs. Thai prices climbed to $465–468 amid flooding concerns, while Vietnamese prices remained unchanged as trading activity weakened.
Indian rice export prices held near a more than one-year high this week as a weaker rupee offset rising paddy costs amid crop supply concerns, while Thai rates increased on flooding worries.
“Rupee depreciation is helping keep export prices steady. Demand softened slightly this week as buyers delayed purchases due to higher freight rates,” said a Kolkata-based trader.
India’s 5% broken parboiled variety was quoted at $378 to $384 per ton this week, unchanged from last week. Indian 5% broken white rice was priced at $379 to $384 per ton.
The country’s rice production is set to decline this year for the first time in a decade as below-normal rainfall threatens to cut yields.
In Thailand, 5% broken rice was quoted at $465 to $468 per tonne, up from $460 last week.
Prices this week are slightly higher as vessels have arrived to collect cargo that was previously contracted, a trader said. “Supply remains good as we are in the late harvest period for the second rice crop,” the trader added.
Demand from the Philippines is also expected, another trader said.
Prices rose due to flooding, which may have damaged supplies in some provinces and led exporters to expect lower production, the trader said, adding that demand has not increased enough to create a shortage of supply.
Meanwhile, Vietnam’s 5% broken rice <RI-VNBKN5-P1> was offered at $420-$430 per metric tonne on Thursday, unchanged from last week.
“Trading activity is quiet as the Philippines is not buying, while Chinese buyers have not yet resumed their purchases after their week-long holiday,” a trader based in Ho Chi Minh City said, adding that African buyers remain active.
Vietnam’s rice exports in September fell 9.3% from a year earlier, according to the government data. For the first nine months of this year, exports fell 5.4% from a year earlier.
In Bangladesh, rice prices rose by 1 taka to 2 taka per kilogram in recent days, with traders attributing the increase to higher transportation costs following the latest fuel price hike.
The rise has been particularly noticeable in medium- and fine-quality varieties.
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Source : The Hindu Businessline
