Rice prices from top exporter India extended declines to an 18-month low on rising supplies amid depreciation in the rupee, while weak demand pushed Thai rates to a two-year trough.

India’s 5% broken parboiled variety was quoted at $429-$435 per metric ton this week, the lowest since July 2023 and down from the last week’s $431-$440.

Indian 5% broken white rice was quoted at $432 to $440 per ton this week.

“Buyers know that there are ample supplies in India, so they are making purchases slowly and have started to quote lower prices,” said a New Delhi-based dealer with a global trade house.

India’s rice stocks reached a record 60.9 million metric tons in early January, eight times the government’s target, while rice exports held steady in 2024 despite New Delhi’s export curbs. Exports gained momentum after most restrictions were lifted in September and October.

Thailand’s 5% broken rice fell to $450-$455 from last week’s $460-$465 per ton due to slowing demand. Prices marked their lowest level since December 2022.

Asia rice: Weak rupee, plentiful stocks pin India rates to 18-month low

The market is quiet now and Indonesia is likely importing less because of better production, said a Bangkok-based trader.

“We have to wait to see after Chinese New Year,” said another trader.

Vietnam’s 5% broken rice was offered at $417 per ton, down from $422 a week ago, according to the Vietnam Food Association, its lowest level since September 2022.

“Trading activity continues to be weak ahead of the Lunar New Year holiday that begins this weekend,” a trader based in Ho Chi Minh City said.

“Exporters and processors have slowed down their paddy purchases from farmers,” the trader said, adding that activity will not resume until early February.

Meanwhile, Bangladesh could import 700,000 tonnes of rice for the current fiscal year that ends in June, a food ministry official said requesting anonymity. The government aims to strengthen its dwindling food grain stock and alleviate the cost of living crisis for the people struggling with prolonged high inflation.