Prices of parboiled rice exported from top hub India this week gained on improved demand and concerns over production, while demand from other Southeast Asian markets drove Thai rates to their highest in four months.
India’s 5% broken parboiled variety was quoted at $499 to $506 per ton this week, from the last week’s $497 to $505.
The prices of paddy are rising because the government has been purchasing it from farmers at an increased support price, ultimately lifting export prices, a Kolkata based exporter said.
Thailand’s 5% broken rice prices increased to their highest since August at $640 per ton from last week’s $620-$625.
Traders say the price increase is driven by demand from markets like Indonesia and the Philippines, which are anticipating shipments within the month.
The higher price will likely be maintained or get stronger towards the end of the year due to a small amount of supply entering the market, a trader said.
Asia rice: India rates ease on soft demand
Vietnam’s 5% broken rice were offered at $655-$660 per metric ton on Thursday, compared with $655-$665 a week ago, traders said.
“Trading activity remains quiet due to tight supplies, while buyers are hesitant to place new orders because prices are relatively high,” a trader based in Ho Chi Minh City said.
Traders said supplies won’t increase until March next year when farmers harvest the winter-spring crop.
Preliminary shipping data showed 132,450 tons of rice is to be loaded at Ho Chi Minh City port in the Dec. 1-Dec. 16 period, with most of the rice heading to the Philippines, Indonesia and Cuba.
In Bangladesh, officials said the government plans to procure 200,000 tons more rice from local farmers in the current harvesting season to boost reserves.
The government had a target to procure 700,000 tons of rice locally.
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