Rice export prices in India extended losses this week to hit their lowest level in 15 months, due to depreciation in the rupee and rising supplies.
Top exporter India’s 5% broken parboiled variety was quoted at $442-$449 per ton, the lowest since July 20, 2023 and down from the last week’s $450-$484. Indian 5% broken white rice was quoted $449-$455 per ton.
The competition among rice-exporting countries has intensified after India’s export duty move – demand remains strong, but buyers are seeking rice at a lower price, said a New-Delhi based trader.
Indian exporters were lowering prices because of depreciation in rupee and as new season supplies are bringing down paddy prices, he added.
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Earlier this month, India scrapped the export tax on parboiled rice and removed the floor price for the export of non-basmati white rice to boost exports.
Elsewhere, Bangladesh is considering a further reduction in tariffs on rice imports as local prices continue to soar, officials said.
Asia Rice: Rates drop across major hubs after India slashes export duty
Despite recent allowances, which lowered tariffs, traders have shown limited interest, primarily due to high import costs exceeding 65 Taka ($0.5462) per kg. In response, officials are proposing to lower the tariff to 5% to encourage more private sector involvement and to alleviate the burden on consumers facing high prices.
Meanwhile, Thailand’s 5% broken rice slipped for a second consecutive week to $485-$495 per tonne, down from last week’s $510. Traders attributed the fall to a weaker baht and currency fluctuations.
Recently, with Thai rice being cheaper than Vietnam rice, it stands a chance of winning an auction from Indonesia, said a Bangkok-based trader.
Indonesian state purchasing agency Bulog had issued an international tender to buy 500,000 metric tons of rice.
Vietnam’s 5% broken rice were offered at $520-$525, versus last week’s $532, traders based in the Mekong Delta region, the country’s rice bowl said.
“Traders are waiting for Indonesia’s Bulog’s decision. Successful bidders are scheduled to be announced on November 3,” said a trader.
Source: Brecorder
