Rising Demand for Thai Parboiled Rice in West Africa as Price Gap with India Narrows
Demand for Thai parboiled rice is rising in West Africa as its price gap with Indian rice narrows. Thai PB 100% was assessed at \$375/mt FOB on July 7, close to India’s \$381/mt. Despite higher costs, buyers in Nigeria and Benin favor Thai rice for its superior long-grain quality and premium appeal.
Demand for Thai parboiled rice is emerging in the West African market, as the price difference between Thai and Indian parboiled rice has declined sharply recently.
Platts, part of S&P Global Commodity Insights, assessed Thai PB 100% at $375/mt FOB and India PB 5% at $381/mt FOB on July 7. Indian parboiled rice 5% STX CFR Cotonou was assessed at $445/mt on July 4, up $25/mt frm a month ago.
A trader based in Thailand said Thai white rice is in demand in Iraq, but recent tensions in the Middle East have disrupted supply, leading to a decrease in demand for Thai rice.
Another trader in Thailand pointed out that around 2013, Thailand offered parboiled rice at a lower price than India.
A buyer in Benin said that if Thai rice was genuinely affordable, buyers would likely choose it due to its superior quality.
A Nigerian miller said that if Thai parboiled rice were available, Nigerians would prefer it because it is long-grain and of premium quality. He added that Thai imported rice costs Naira 75,000-70,000 ($97-$95), while Indian imported parboiled rice is priced at Naira 60,000-62,000 ($78-$80). Despite the price gap, people still favor Thai parboiled rice.
Another miller in Nigeria said the Nigerian government has sealed the Cotonou border, which encourages imports to be conducted directly to Nigeria, along with the payment of import duties.
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Source : Ukr Agro Consult
