India, Vietnam see rise in rice export rates as demand firms
Indian, Vietnamese and Thai rice export prices rose this week as demand improved, supplies tightened and pre-arranged sales boosted buying. Indian rice remained the cheapest globally, while El Niño concerns, reduced production risks and Bangladesh’s procurement drive added support.
Indian and Vietnamese rice export prices edged higher this week on a slight improvement in demand, while Thai traders attributed their country’s rise in export rates to pre-arranged sales and internal factors.
India’s 5% broken parboiled variety was quoted this week at $336-$343 per metric ton, versus last week’s $333-$340. Indian 5% broken white rice was priced at $337-$342 per ton.
Buyers are turning to Indian rice as supplies are significantly cheaper than those from Thailand and Vietnam, said a Kolkata-based trader.
Vietnam’s 5% broken rice was offered at $410-$415 per ton, up from $395-$400 a week ago.
“Demand is picking up while domestic supplies are getting thinner,” a Ho Chi Minh City-based trader said.
“Vietnam earlier this month reached a deal with the Philippines to export 1.5 million tons to this market for delivery through April next year and I think this is broadly positive for the market,” the trader said.
Vietnam exported 472,099 tons of rice in the first half of May, raising the country’s total rice shipments so far this year to 3.85 million tons, according to government customs data.
Thailand’s 5% broken rice was quoted at $440-$465 per ton, up from $415 last week, traders in Bangkok said. “Regular customers are making deliveries, causing exports to buy at higher prices,” said one trader, adding that production may have declined and markets were waiting to see to the July harvest.
Another trader said internal factors helped push up prices, especially for animal feed.
“Exporters have pre-arranged sale contracts so they must buy at higher prices,” said another trader.
“Rice millers said that they can sell despite the higher prices,” the trader added. On supply, the El Nino phenomenon will reduce production in the next crop, the trader said.
El Nino, a climate phenomenon characterized by the abnormal warming of sea surface temperatures in the central and eastern tropical Pacific Ocean, is likely to develop soon, with an 82% probability during May-July 2026, the U.S. Climate Prediction Center said last week.
Meanwhile, Bangladesh has started procuring rice from farmers to help stabilise the market. Rice prices have remained elevated as heavy pre-monsoon rains destroyed more than 200,000 metric tons of the staple.
To Read more about Rice News continue reading Agriinsite.com
Source : The Economic Times
