The prices of rice exported from India, one of the leading hubs, experienced a modest increase this week after reaching a six-month low. The decline in prices attracted buyers from various Asian countries, but the comparatively higher rates in Vietnam raised concerns about future demand.
The price range for India’s 5% broken parboiled rice variety was revised upwards this week to $375-$380 per tonne, representing a rise from the previous week’s range of $374-$378.
“Buying from Asian countries has improved a bit because of lower prices, although the majority of buyers are still on the sidelines,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.
According to the food minister of Bangladesh, the neighboring country that frequently relies on rice imports to address shortages resulting from natural disasters like floods, there is no need for rice imports this year.
“There is a good harvest in the country, so there is no need to import rice,” Food Minister Sadhan Chandra Majumder told reporters.
The price for Vietnam’s 5% broken rice remained steady this week, with offers ranging from $490 to $495 per tonne. This price level has remained unchanged from the previous week and represents the highest level observed since late April.
“Trading activity is quiet as some buyers are slowing their purchases due to high prices,” a trader based in Ho Chi Minh City said.
According to government data released on Monday, Vietnam’s rice exports in the first five months of this year are projected to have increased by approximately 40.8% compared to the same period last year, reaching a total of 3.9 million tonnes. The estimated rice shipments from Vietnam in May alone amounted to 1 million tonnes.
Amidst subdued demand and a weaker baht, the prices of Thailand’s 5% broken rice remained relatively stable at $495 per tonne, showing little change compared to the range of $495-$500 quoted last week.
“We have to wait for additional supply to be released,” said a Bangkok-based trader.
