India is the largest rice exporter in the world and commands about 40% of the global rice trade.
Rice Pricing
Due to weaker baht and demand, Thai rice export prices fell in the current week to their lowest levels in more than a month, while Indian rates held steady near their highest levels in roughly two years due to strong buying. Prices for Thailand’s 5% broken rice, identified by the code RI-THBKN5-P1, were quoted at $460 to $465 per tonne, down from $480 to $490 in the previous week.
The 5% broken parboiled variety RI-INBKN5-P1 from top exporter India was quoted at $395 to $402 per tonne this week, the same price as the previous week.
A Bangkok based trader mentioned, “The baht is weaker and has lowered the price of rice. Demand has been quiet and there has not been a big order.” Another trader mentioned that the demand has been quiet and that the demand would have to wait until a new lot of supply arrives in April.
A Mumbai-based dealer with a global trade house mentioned, “Buyers were making purchases despite the recent rise in prices. They are comfortable with the price rise.”
On February 16, the price of the 5% broken rice from Vietnam (RI-VNBKN5-P1) remained unchanged from a week earlier at $455 to $460 per tonne.
A trader based in Ho Chi Minh City said, “Prices are expected to stay at elevated levels as many countries are buying to boost their national reserves, including China and Indonesia”.
Exports of Indian Rice
Despite restrictions by the government on exports, India’s Rice Exports in 2022 rose to a record high as consumers kept buying because of low prices, according to government and business officials. On September 8, 22, the Directorate General of Foreign Trade, Union Ministry of Commerce, India, changed the export policy for broken rice from “free” to “prohibited.” The new policy took effect on September 9th, but some exports were allowed to go through until September 15th (later changed to September 30th).
Traders predict that this year’s exports will exceed 6 million tonnes and point out that domestic inventory levels are low.
Despite good crops and reserves, domestic rice prices in Bangladesh remain high, according to traders. In an effort to keep prices down, the government has also been importing rice while allowing private traders to purchase.
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