Thai rice demand quiet with no major deals, Indian rates near two-year low
Rice export prices in India remain near a two-year low, with 5% broken parboiled rice at \$382–\$389 per tonne, due to ample supply and expected bumper harvest. Prices in Thailand and Vietnam stayed steady amid weak demand. Vietnam seeks regulatory easing to aid small exporters, while Bangladesh’s procurement drive struggles despite higher purchase rates. Global market activity remains muted.
BENGALURU — Ample supplies and expectations of another bumper crop in India kept rice export prices near a two-year low this week, while Vietnam and Thailand saw muted activity.
India’s 5% broken parboiled variety was quoted at US$382-$389 per tonne – its lowest level since June 2023 – unchanged from last week. Indian 5% broken white rice was priced at $375 to $381 per tonne this week.
The weather department has forecast above-average monsoon rainfall, which will help farmers expand the area under rice cultivation and boost production, a Mumbai-based trader said.
On Wednesday, India raised the price at which it will buy the new-season common rice paddy variety from local farmers by 3%, the lowest increase in five years, as New Delhi struggles to manage overflowing granaries after last year’s record harvest.
Meanwhile, Thailand’s 5% broken rice was quoted at $405-$410 per tonne, unchanged from last week
Traders said demand has been quiet with no major deals taking place, while supply has been ample as good yield from the recent harvest entered the market.
A farmer carries rice straw in a paddy field in the Samrong district of Ubon Ratchathani, Thailand. (File photo: Bloomberg)
Vietnam’s 5% broken rice was offered at $396 per metric tonne on Thursday, slightly down from $397 a week ago, according to the Vietnam Food Association.
“Trading activity is weak and so is demand,” a trader based in Ho Chi Minh City said.
Vietnam’s Chamber of Commerce and Industry (VCCI) recently asked the Ministry of Industry and Trade to ease its regulations to help boost rice exports, state media reported earlier this week.
VCCI said the ministry’s current regulation that requires rice exporters to own rice warehouses is barring small exporters from entering the market, adding that they should be able to rent warehouses if needed.
Elsewhere, Bangladesh’s current local rice procurement drive is progressing slowly, despite a 9% hike in purchase rates, as higher market prices and shortcomings in the buying process hinder progress.
Launched on April 24, the initiative aims to procure 1.75 million tonnes of rice and paddy, with parboiled rice being bought at 49 taka ($0.4026) per kilogramme and paddy at 36 taka per kg.
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Source : Bangkok Post
