ASIA RICE-Buyers favor cheaper Indian variety, Vietnam’s supplies running low
Nov 23 (Reuters) – Prices of parboiled rice exported from top hub India extended their rally this week as buyers preferred cheaper Indian variety as rates in other major hubs advanced higher, with Vietnamese traders worrying about low crop supplies.
Top exporter India’s 5% broken parboiled variety RI-INBKN5-P1 was quoted at $500 to $507 per ton this week, up from last week’s $493 to $503, with prices gaining even as supplies from the new season crop kept rising.
“Due to rising prices in Thailand and Vietnam, buyers are returning to India and willingly paying export duty. They are finding Indian supplies more cost-effective than those from other origins,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.
India last month extended a 20% duty on exports of parboiled rice until March 2024.
Domestic rice prices in neighbouring Bangladesh have stayed elevated, traders said, despite good yields and reserves. The government has been selling rice at subsidised rates to help the poor.
In Vietnam, prices of 5% broken rice RI-VNBKN5-P1 were offered at $650-$655 per metric ton on Thursday, unchanged from a week ago, traders said.
“Sales are slow as supplies are running low,” a trader based in Ho Chi Minh City said.
“Exporters are hesitant to sign new contracts as they are not sure if they can procure enough paddy from farmers.”
Preliminary shipping data showed 299,817 tons of rice is to be loaded at Ho Chi Minh City port in the Nov. 1-23 period, with most of the rice heading to Africa, Cuba, Indonesia, the Philippines and Malaysia.
Thailand’s 5% broken rice prices RI-THBKN5-P1 rose to $600 per ton from the range of $570 to $575 quoted last week.
Prices continued to increase on higher demand for the Thai variety, said a Bangkok-based trader.
Another trader said there was a continuous demand from Indonesia, the Philippines and Malaysia and that supply was coming in without any problems.
