ASIA RICE-Stiff competition pushes India prices to 21-month low

By Sarah Qureshi

March 13 (Reuters) – Indian rice export prices fell to a 21-month low amid subdued demand and stiff competition from other exporting countries, while Vietnam’s rates ticked higher.

India’s 5% broken parboiled variety was quoted at $403-$410 per tonne, down from last week’s $409-$415.

“Buyers are quoting really low prices because Pakistan and Vietnam are selling rice cheaper,” said a New Delhi-based dealer with a global trade house. India last week allowed the export of 100% broken rice, which had been banned since September 2022.

Vietnam’s 5% broken rice was offered at $392 per metric ton on Thursday, up from $389 a week ago, according to the Vietnam Food Association.

Farmers in the Mekong Delta have harvested around half of the winter-spring crop, the trader said, adding that the government’s push to buy and stockpile rice is not yet visible.

Thailand’s 5% broken rice fell to $405-$408 per tonne from last week’s $415 due to exchange rate volatility, traders said.

Vietnamese and Indian rice prices were much lower than that of Thailand; demand for Thai rice has been very low and there are no issues with supply, said a Bangkok-based trader.

Another trader said Thai rice exports would be challenging this year due to new supply coming in from other producers like India and Cambodia.

“Demand was steady with a focus on regular customers,” the trader said, adding that prices will not top $410 despite currency volatility.

Meanwhile, domestic rice prices in Bangladesh remain high despite efforts to increase imports and boost reserves, putting pressure on consumers.

The country is purchasing rice from Vietnam, Myanmar, and Pakistan through government-to-government deals and international tenders.

This article has been republished from The Live Mint.