India rates climb to over 2-month peak as rivals offer higher prices

Prices of parboiled rice exported from India climbed to over two-month highs this week, following higher rates in other hubs, as traders in Vietnam and Thailand stare at improved demand in the face of limited supplies.

The 5% broken parboiled variety RI-INBKN5-P1 was quoted at $510-$517 per metric ton, their highest level since late October 2023, versus last week’s $508-$515.

“Local paddy prices remain strong despite export restrictions. Supplies have begun to moderate in markets due to lower production,” said an exporter at Kakinada, Andhra Pradesh.

State-run agencies have procured 46.39 million tons of paddy so far in the current marketing year, down from last year’s 53.40 million tons.

Thailand’s 5% broken rice prices RI-THBKN5-P1 were quoted at $650 per metric ton, down from last week’s $655-$660, when prices rose to their highest levels since 2008.

While there was some demand from Indonesia and the Philippines, no more fresh supplies were expected until the next harvest, said a Bangkok-based trader.

“Prices are holding steady and can still go up,” the trader said, adding that India’s ban meant that any trades were based on government-to-government deals.

In Vietnam, the 5% broken rice RI-VNBKN5-P1 was offered at $653 per metric ton, unchanged from last week.

“Supplies remain low and we anticipate demand for Vietnamese rice will be strong this year, particularly from the Philippines and China,” a Ho Chi Minh City-based trader said.

Vietnam’s rice exports in 2023 are estimated to have risen 17.4% from a year earlier to 8.34 million metric tons, a record high.

Preliminary shipping data showed 44,150 tons of rice to be loaded at Ho Chi Minh City port during Jan 1-10, with most heading to the Philippines.

Tags: paddy, demand, broken rice, parboiled rice, export, prices, Vietnam, Production, India, Thailand