Prices of rice exported from Thailand and Vietnam extended gains this week to their highest level in three months on strong demand, while India rates held steady near a one-month peak amid rising supplies.

Thailand’s 5% broken rice prices rose to $630 per ton from $600 per ton last week on stronger demand from the Philippines and more deliveries, said a Bangkok-based trader.

Suppliers were hesitant to sell and some were holding on in case prices rose further, trader said.

Vietnam’s 5% broken rice prices rose to $655-$665 per metric ton on Thursday, up from a range of $650-$655 a week ago.

“Prices edged up following a report this week by a unit of Fitch Solutions saying trade restrictions and El Nino risks will support prices next year,” a Ho Chi Minh City-based trader said.

Asia rice: Buyers favour cheaper Indian variety

Preliminary shipping data showed 325,317 tons of rice is to be loaded at Ho Chi Minh City port in the Nov 1-30 period, with most of the rice heading to Africa, Cuba, Indonesia, the Philippines and Malaysia, and 5,700 tons in the Dec 1-10 period.

Vietnam’s rice exports in the first 11 months of this year are estimated to have risen 16.2% from a year earlier to 7.75 million tons.

Top exporter India’s 5% broken-parboiled rice prices at $500 to $507 per ton this week, unchanged from the last week.

The new exports orders are trickling in as other countries are quoting higher prices than India, said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Last month, India extended a 20% export duty on parboiled rice until March 2024.

In Bangladesh, domestic prices of rice stayed elevated this week despite good yields and reserves, traders said. To help consumers against inflation, the government continues to sell the essential grain at subsidized rates.