Demand for rice saw a slight uptick this week, with buyers favoring the comparatively more economical offerings from India, while elevated prices in Vietnam and Thailand led to a slowdown in trading activity.
“Buyers have started making purchases. Indian rice is cheaper even after paying 20% exports duty,” said a New Delhi-based dealer with a global trade house.
In August, India implemented a duty on parboiled rice, which will remain in effect until October 15th.
Even though there was increased demand from Asian and African countries, the prices for India’s 5% broken parboiled rice variety remained steady at $525-$535 per metric ton for the third consecutive week.
A senior official at the agriculture ministry in neighboring Bangladesh has announced their aim to harvest 17 million tonnes of rice this year, a notable increase from the 14 million tonnes harvested last year. This news provides a measure of relief amid the fluctuations in the global market.
Vietnam’s 5% broken rice continued to be priced at $610-$620 per metric ton, with no change from the previous week.
“The market appears to be stable after the recent volatilities triggered by Indian ban in July,” a Ho Chi Minh city-based trader said.
The present prices are sufficiently favorable for farmers to achieve profitability. However, trading activity remains subdued as traders are biding their time, anticipating further stabilization in the market, according to the trader.
Initial data indicates that between September 1st and September 29th, there were plans to load 294,100 metric tons of rice at Ho Chi Minh City port, with the majority of it destined for Indonesia, Malaysia, the Philippines, and Turkey.
The prices of Thailand’s 5% broken rice have fluctuated, expanding to a range of $590-$607 per metric ton, compared to the $605 price of the previous week. Traders have attributed this variability to shifts in exchange rates.
The baht dropped to its lowest level in more than 10 months due to concerns about the country’s fiscal outlook.
A trader based in Bangkok mentioned that buyers have reduced their purchasing activity due to the elevated prices.
According to another trader, the introduction of new supply into the market in October has the potential to lead to further price reductions.
