Indian rice export rates fall on muted demand, prospects of higher supply

By Reuters

Indian rice export prices declined further this week due to subdued demand and expectations of higher production in the new season as cultivation areas expanded.

Top exporter India’s 5 per cent broken parboiled variety was quoted at $536-$540 per metric ton, down from last week’s $539-$545. India’s discount to Thailand and Vietnam’s prices has narrowed, leading to lower exports, said a New Delhi-based dealer with a global trade house.

Indian rupee this week depreciated to a record low, increasing exporters’ return from overseas sales.

Vietnam’s 5 per cent broken rice was offered at $570 per ton, up from $565 a week ago, traders said.

Domestic supplies are low, while exporters are increasing their deliveries to Indonesia and Africa, a trader based in Ho Chi Minh City said.

Vietnam’s rice exports in July rose 46.3 per cent from the previous month to 751,093 metric tons, according to the government’s customs data. This raised its total shipments in the first seven months of this year to 5.3 million tons, up 8.3 per cent from a year earlier.

Thailand’s 5 per cent broken rice was quoted at $567 per tonne, up slightly from last week’s $565.

Demand was coming from regular customers and market activity has been quiet, a Bangkok-based trader said, adding that supply had been coming out steadily and prices could fall if supply increased further.

Domestic rice prices in Bangladesh stayed elevated despite good inventory.

This article has been republished from The Business Standard.