Parboiled rice export prices from India extended their record rally this week, driven by tight supplies and firm demand due to higher prices in other hubs, while Thai rates slipped as new supply from fresh harvests trickled in.

Top exporter India’s 5% broken parboiled variety was quoted at a record $537 to $546 per ton this week, up from last week’s $533 to $542.

“Indian prices are rising, but they still trade at a steep discount compared to supplies from Pakistan and Thailand. This discount is helping to maintain demand,” said a Mumbai-based dealer with a global trade house.

Pakistan’s rice exports are likely to jump to a record high in the year ending in June as rival India’s decision to curb shipments forces buyers to turn to Islamabad, which is selling the grain at nearly 16-year high prices.

Thailand’s 5% broken rice prices was quoted at $640 to $658 per ton, slipping from $665 per ton last week.

Prices dropped as new crops were rapidly coming out, one Bangkok-based trader said, but added that Thai rice was not winning at auctions due to high prices.

Asia rice: India rates spring to record highs on dwindling supplies, firm demand

Another trade said Vietnamese rice won bids to Pakistan and Indonesia.

Vietnam’s 5% broken rice was offered at $635-$640 per metric ton on Thursday, up from $630 a week ago, traders said.

“Price edged up after Vietnamese exporters were selected to supply most of the 500,000 tons in Indonesian Bulog’s latest tender,” a trader based in Ho Chi Minh City said.

Prices also found support from Vietnam and the Philippines memorandum of understanding on rice trade that was signed earlier this week, the trader added.

Meanwhile, Bangladesh will allow rice imports by reducing duties if necessary to reduce the price of the country’s main food grain, Food Minister Sadhan Chandra Majumdar said.