India’s rice exports dipped to a 21-month low level. Weak demand and increased competition from other rice-exporting economies are the reasons for the drop in exports. Prices decreased in India but rose slightly in Vietnam this week.
India’s 5% broken parboiled rice export price this week has been set at $403-$410 per ton from $409-$415 per ton in the previous week. Export prices in the world have also impacted Indian rice prices as per reports from Indian news agency Live Mint. India had the risk of a production crisis in 2022 due to insufficient rains. Subsequently, all non-Basmati rice exports were banned by the Indian government in September in 2022. In 2023, other rice exports were subjected to additional controls. However, due to record crops improving the supply situation, the government began relaxing such controls. Traders report that they have begun purchasing rice from alternative sources at lower prices, exerting downward pressure on Indian rice prices. Vietnam 5%-broken rice sold on Thursday at $392 per ton as against $389 per ton in the earlier week based on the Vietnam Food Association statistics. Half of the winter-spring crop has been harvested by now by Vietnamese farmers in the Mekong Delta region but yet to feel the government rice buying and stockpiling scheme. Meanwhile, Thailand also registered a drop in the price of rice this week. The 5% broken rice decreased in value from $415 per ton the previous week to $405–$408 per ton. Exchange rate fluctuations are quoted as the cause by market experts.
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According to a Bangkok trader, “Vietnam and Indian rice are much cheaper compared to Thailand’s. Therefore, despite an ample amount of available supplies, demand remains sluggish.” Another trader said, “Since fresh supplies of rice are increasing from Cambodia and India, Thai rice demand can fall further this year. While regular purchasers are supporting stable demand, currency fluctuations can stop the price from rising above $410 a ton.” India exports the most rice globally and grows around 40% of the world’s rice. Thailand, Vietnam, Pakistan, and the United States are the next four major rice-exporting nations after India. Combined, the four exported less rice in 2023 than India exported by itself. India exports to 140 countries, and as such, its policies have a significant impact on the world rice prices. India removed all the curbs on rice exports in October 2023 and in the process reduced rice prices globally. In spite of rice imports from other nations, rice prices in Bangladesh have been consistently on the higher side throughout the winter season.
Source: Prothom Alo
