India's rice export rates soared to unprecedented levels this week, driven by restricted supplies and consistent demand from Asian and African purchasers. The 5 per cent broken parboiled variety was quoted at $533-$542 per ton, marking an increase from last week's $525-$535. This surge can be attributed to reduced availability caused by government paddy procurement and ongoing rice milling for the new season, as reported by a news agency.
Nitin Gupta, senior vice president of Olam Agri India, explained, "Supplies in the market are limited since the government's paddy buying is leaving little for private players."
India's rice output is forecasted to decrease this fiscal year, marking the first decline in eight years, which has raised concerns about potential export restrictions to manage food prices ahead of elections.
Meanwhile, Vietnam's 5 percent broken rice was offered at $630 per metric ton, a decrease from $653 the previous week. Traders are anticipating stronger supplies from the upcoming winter-spring harvest in the Mekong Delta, according to the report.
Thailand witnessed a slight drop in prices for 5 percent broken rice to $663-$665 per ton, attributed to a weakening baht. However, domestic activity and a new order for 0.5 million tonnes from Indonesia provided support to prices, as reported by a Bangkok-based trader.
Meanwhile, rice prices in Bangladesh remained high despite good yields and record reserves, prompting Prime Minister Sheikh Hasina to issue orders against rice hoarders.