This week saw a rise in rice export prices for India, the leading exporter, as traders adjusted to increased duties on rice shipments. Meanwhile, demand in Thailand remained subdued.
India’s 5% broken parboiled variety fetched a price range of $550-$558 per ton this week, indicating a rise from the previous week’s $543-$550. Earlier this month, rates soared to a record high of $560.
A New Delhi-based dealer affiliated with a global trade house stated, “We’ve had to increase prices due to the government’s shift towards considering the total transaction value rather than the Free on Board (FOB) value for calculating the 20% export duty. Consequently, our export prices have been driven up.”
Continue Exploring: India prohibits non-basmati white rice exports amidst supply concerns
In August 2023, New Delhi implemented a 20% export duty on parboiled rice shipments as a measure to regulate domestic rice prices.
Four exporters informed that the Indian customs department has issued notices demanding duty differentials on rice exported over the past 18 months. This uncommon tax demand has the potential to severely impact rice shipments from India.
Continue Exploring: Rice exporters in India face huge tax demand, casting shadow over exports
The price of Thailand’s 5% broken rice was listed at $585-$590 per ton this week, marking a decrease from the previous week’s $598.
According to a trader based in Bangkok, prices eased due to a decline in the value of the baht and subdued demand. However, they noted that Indonesian buyers provided support to the prices.
Another trader mentioned that Vietnamese rice was more affordable and highlighted that the local supply was nearing its seasonal conclusion, despite some remaining paddy.
The price for Vietnam’s 5% broken rice remained steady at $590-$595 per metric ton, the same as last week.
A trader based in Ho Chi Minh City mentioned that exporters have reduced their purchases from farmers following a U.S. forecast earlier this month suggesting that the Philippines could decrease its imports this year due to increased domestic supplies.
Vietnam’s primary market for rice exports is the Philippines.
Despite favorable yields and reserves, rice prices in Bangladesh remained high.
Authorities indicated that Bangladesh might permit private traders to import up to 200,000 tonnes of rice to alleviate the domestic prices of the essential grain.
Continue Exploring: Govt rolls out ‘Bharat’ rice at INR 29/kg to tackle rising food prices