Top rice exporters saw rates for the staple grain advance this week to a more than two-year peak on supply concerns and continuing high demand.

Vietnam’s 5% broken rice was offered at $495-$505 per tonne, a peak since April 2021, up from $498 last week.

“Exporters are rushing to purchase domestic rice to fulfil export contracts, boosting domestic prices amid tight supplies,” a Ho Chi Minh City-based trader said.

Due to unfavourable weather, output from the summer-autumn crop is also not as high as expected, traders said.

Vietnam exported 284,798 tonnes of rice in the first half of June, taking total shipments this year to June 15 to 3.9 million tonnes, customs data showed. Thailand’s 5% broken rice prices rose to $505 per tonne, also an over two-year peak on average, versus $495 last week.

“There are ships waiting to collect rice bound for Indonesia while new rice product has not entered the market,” a Bangkok-based trader said, adding “exporters are struggling to find enough supply in time.”

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Another trader said prices could remain at this level due to rising domestic prices.

Thailand’s commerce minister said last week that Thai rice exports could exceed 8 million tonnes this year, larger than the previous 7.5 million-tonne projection.

Top exporter India’s 5% broken parboiled variety was quoted at $397-$405 per tonne, a peak since Feb. 2021, rising from $390-$398 last week.

“Exporters are forced to increase prices because paddy prices are rising. Moreover, the rupee has also strengthened this month, adding additional pressure,” said a New-Delhi-based trader.

India recently raised prices at which it will buy new-season common rice paddy from farmers by 7%.

Neighbouring Bangladesh’s rice production is forecast to increase by 1.8% versus year-on-year to 38.9 million tonnes in the 2023/24 marketing year, according to the Food and Agriculture Organization’s (FAO) Global Food Outlook report.