Rice export rates dipped across major Asian hubs this week after India abolished export duty on the staple and raised fears of over-supplying the market, pushing rates in the top exporter and in Vietnam to their lowest levels in more than a year.

India scrapped the export tax on parboiled rice late on Tuesday and removed the floor price of $490 a metric ton for the export of non-basmati white rice on Wednesday to boost exports.

India’s 5% broken parboiled variety was quoted at $450-$484 per ton this week, the lowest since August 2023. Indian 5% broken white rice was quoted $460 to $490 per ton.

“Indian prices fell sharply after the government removed export duty and minimum export price. Demand was good this week,” said a Kolkata-based exporter.

Vietnam’s 5% broken rice was offered at $532 per metric ton on Thursday, down from $537 a week ago, according to the Vietnam Food Association. Prices this week are at their lowest levels since July 2023.

“Prices of Vietnamese rice have eased due to competitive prices from other exporting countries,” a trader based in Ho Chi Minh City said.

Asia rice: India prices hold near 1-year lows, Thai rates rise on steady demand

“Indonesia’s Bulog’s decision on Wednesday to cancel a rice procurement bidding has also left an adverse impact on prices,” the trader added, without elaborating.

Thailand’s 5% broken rice fell to $510 per ton from $525 last week, after India’s export decision.

Demand has been steady and exporters were taking things week-by-week, said a Bangkok-based trader, adding that supply had already been harvested.

Meanwhile, Bangladesh reduced import duties on rice by 37% following devastating floods that destroyed nearly 1.1 million tons of the crop.

According to a notification from the finance ministry earlier this week, the customs duty on rice has been cut from 25% to 15%, while the regulatory duty has been lowered from 25% to 5%.

Additionally, the country withdrew the existing 5% advance tax on rice imports.