Rice prices in India have fallen to a record low

Rates of parboiled rice exported from India eased off from record highs this week, as buyers sought cheaper deals elsewhere, while a weaker baht weighed on Thai prices.

Top exporter India’s 5% broken parboiled variety RI-INBKN5-P1 was quoted at $548-$555 per metric ton this week, down from the last week’s $552-$560.

African buyers, hesitant at the current price level, are seeking cheaper alternatives, a Mumbai-based dealer with a global trade house said.

Indian traders are signing few new contracts for exports of parboiled rice after customs officials changed the calculation method for the 20% export duty, resulting in a higher levy, four industry officials told Reuters earlier this week.

Thailand’s 5% broken rice RI-THBKN5-P1 was quoted at $615 per ton on Thursday, down from $620 to $622 quoted last week.

Traders attributed the drop to the weak baht and competition from neighbouring Vietnam, which has pushed many Thai exporters to slash prices.

There is some demand from markets such as Indonesia and the Philippines but no large deals, a Bangkok-based trader said.

The supplysituation remains unchanged, with some new supply of rice entering the market, the trader said.

Meanwhile, Vietnam’s 5% broken rice RI-VNBKN5-P1 was offered at $585 per ton, up from $580 a week ago.

“Rice export prices edged higher slightly after domestic paddy prices rose this week on increasing purchases by exporters and processors,” a trader based in Ho Chi Minh City said.

Preliminary shipping data showed 450,250 tons of rice is to be loaded at Ho Chi Minh City port in March, with most of the rice heading to the Philippines and Indonesia.

Bangladesh has distributed 150,000 tonnes of rice among 5 million families at subsidized rates before the Muslim holy month of Ramadan, the country’s food minister said.

The government has been struggling to control prices of the staple grain despite good harvest and reserves.

Tags: prices, rice, India