Asia Rice: India prices slip to near 3-month low on weak demand

By Daksh Grover and Reuters

Top exporter India’s rice export prices fell to their lowest level in nearly three months this week, weighed down by soft demand, while the long holiday weekend kept activity muted in Thailand.

India’s 5% broken parboiled variety was quoted at $538-$546 per ton this week, down from the last week’s $540-$548. Prices hit a record high of $560 last month.

Weak demand has persisted for the past few weeks, as buyers postpone purchases in anticipation of lower prices, said an exporter based at Kakinada, in southern state of Andhra Pradesh.

Thailand’s 5% broken rice prices was quoted at $585 per ton on Thursday, down from last week’s price quoted at $585 to $590 per ton.

Prices remained stable during the ‘Songkran’ long holiday weekend from April 12 to 16.

Traders say the prices remain constant despite a rice deal with Indonesia, where the buyers sourced from Thailand, Vietnam, and Pakistan.

“There also demand from African markets,” a Bangkok-based trader said.

A new supply of rice has also entered the market, the trader added.

Bangladesh has approved the import of 124,000 tonnes of rice amid soaring staple grain prices, food ministry officials said.

The imported rice has to be available in the domestic market by the end of May.

Meanwhile, most of the markets in Vietnam were closed on Thursday due to the Hùng Kings’ Festival.

This article has been republished from The Economic Times.