Prices have recovered from past six months
India is one of the largest exporters of rice. Prices of rice bordered higher this week from the last six months. Though lower rates attracted buyers from other Asian countries. 5% broken parboiled variety of Indian rice was quoted at USD 375 – 380 per tonne, up from the last week’s price of USD 374 – 378 per tonne.
“Buying from Asian countries has improved a bit because of lower prices, although the majority of buyers are still on the sidelines,” said an exporter based at Kakinada from the state of Andhra Pradesh.
Bangladesh has no plans to buy rice from India as they have finely harvested
There used to be a shortage of rice in Bangladesh due to natural calamities. This creates a necessity to import rice from India. But this year Bangladesh’s Harvest is good enough.
Food Minister Sadhan Chandra Majumder told reporters that – “there is a good harvest in the country, so there is no need to import rice”. Bangladesh, which often requires imports to cope with shortages caused by natural calamities such as floods, doesn’t need to import rice this year.
Vietnam’s rice price is quite higher and unchanged – While the exports have increased
Since April, Vietnam’s rice prices are playing at USD 490 – 495 per tonne, considered as the highest level. Its 5% broken rice price remains unchanged and comparatively higher than India, which posed risks to demand in the near term.
“Trading activity is quiet as some buyers are slowing their purchases due to high prices,” a trader based in Ho Chi Minh City said.
From January to May 2023, government data showed that its rice exports are estimated to have risen about 40.8% from a year earlier to 3.9 Million Tonnes. Rice shipments from the country in May were estimated at 1 Million Tonnes.
Thailand’s rise price has taken a slope
Thailand’s 5% broken rice prices are USD 495 per tonne. Last week it was in the range of USD 495 – 500 per tonne. Subdued demand and a weaker Thai Baht could be the reason for a slight decrement in price. “We have to wait for additional supply to be released,” said a Bangkok-based trader to reporters.
Overall, the demand for Indian rice could be increased for exports, and government policies are also playing a major role. Bangladesh seems to have no demand for Indian rice as they good harvest this year, while Vietnam’s rice could lose its hold of the market due to its higher prices. Thailand is struggling due to its weaker currency.