Rice export prices rose in India, driven by higher procurement costs for local paddy even as demand was tepid, while rates for the Vietnamese variety slipped as activity slowed before a holiday season. Top exporter India's 5 percent broken parboiled variety rose to $381-$386 per tonne this week from the $379-$384 range last week, traders said.
"Paddy prices have risen due to lower supply in the local market, so we have to raise export prices," said an exporter based in Kakinada in the southern state of Andhra Pradesh. Export prices had shot up after the central state of Chhattisgarh, a leading rice producer, raised minimum paddy buying prices to 2,500 rupees per 100 kg from 1,750 rupees.
Neighbouring Bangladesh has no plan to cut the import duty on rice, despite a rise in domestic prices in recent week, given good crops and healthy reserves, a food ministry official said on Wednesday. Higher domestic prices for the staple had prompted speculation amongst traders that the government would cut the duty.