Prices of parboiled rice exported from India fell this week as the rupee depreciated to a record low even as demand for the staple was steady, while Vietnam and Thailand saw muted activity.
Top exporter India’s 5% broken parboiled variety was quoted at $444-$450 per metric ton this week, versus last week’s $445-$453. Indian 5% broken white rice was quoted at $450-$458 per ton this week.
“Demand is steady. Traders are lowering prices to factor in the depreciation of the rupee to a record low,” said a New Delhi-based dealer with a global trade house.
The Indian rupee hit a record low against the dollar this week, effectively increasing the margins of exporters.
Meanwhile, illegal barter trade of gold for food items including grains surged at border checkpoints between India and Bangladesh, as India’s export curbs fuelled a vast disparity with prices in Bangladesh, causing combined government revenue losses of billions of dollars.
Bangladesh will purchase 100,000 tonnes of white rice from Myanmar under a state-to-state agreement, priced at $515 per tonne, officials said on Thursday.
Asia rice: Improved demand lifts export rates in India and Thailand
Additionally, it will import 50,000 tonnes of rice through a tender at $467.70 per tonne.
Vietnam’s 5% broken rice was offered at $517 per metric ton, down from $520 last week, according to the Vietnam Food Association.
“Trading activity remains quiet this week as sellers do not want to sell at low prices while buyers want prices to fall further,” a Ho Chi Minh City-based trader said.
State media cited the agriculture ministry as saying Vietnam’s rice exports in the first 11 months of 2024 rose 10.6% from a year earlier to 8.5 million tons. The value of shipments rose 22.4% to $5.31 billion.
Thailand’s 5% broken rice remained at $510 per metric ton quoted last week.
Demand has been quiet, said a Bangkok-based trader but prices could weaken because of higher Indian exports.
Another trader said demand was quieting down, especially from Western markets.
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