Indian rice export prices hit one-year high amid supply concerns
Indian rice export prices rose to a one-year high amid tightening supplies and concerns over lower summer-crop production due to below-normal rainfall. Vietnam prices remained stable, while Thailand prices increased. Bangladesh also reduced aromatic rice export quotas amid domestic price pressures.
Indian rice export prices extended gains this week, hitting a one-year high, supported by tightening supplies and production concerns for the summer-sown crop due to below-normal rainfall.
“Crop production estimates are being revised lower as the rainfall deficit increases, which is supporting prices,” a Kolkata-based dealer with a global trade house said.
India is likely to receive below-average monsoon rainfall in September after August precipitation came in 16% below normal, the weather department said on Monday.
The country’s 5% broken parboiled variety <RI-INBKN5-P1> was quoted at $371-$377 per ton this week, up from last week’s $369-$375. Indian 5% broken white rice was priced at $368 to $373 per ton.
Meanwhile, Vietnam’s 5% broken rice <RI-VNBKN5-P1> was offered at $440-$445 per metric ton on Thursday, unchanged from a week ago.
“Domestic supplies are falling as the summer-autumn harvest will end in a week, but demand is also falling,” a trader based in Ho Chi Minh City said.
The trader said the Philippines is ramping up its rice imports but buying from suppliers other than Vietnam.
State media cited the Vietnam Food Association as saying that Vietnam’s rice exports this year are estimated at 7.74 million tons.
Bangladesh has halved the previously approved export quantities of aromatic rice for traders, reducing the maximum volume they can ship as the country struggles with high domestic prices and the risk of further increases.
The government had approved exports of 45,270 tonnes of aromatic rice, but only 2,419 tonnes had been exported by August 30. The revised approvals also require a minimum export price of $1.60 per kg, customs quality checks and repatriation of export earnings.
Elsewhere, Thailand’s 5% broken rice <RI-THBKN5-P1> rose to $488 per ton, up from a range of $483 to $485 last week, traders said.
Prices are rising because there is an expectation that output would continue to be low, a Bangkok-based trader said.
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Source : The Hindu Businessline
