In the bustling markets of Bangkok, a culinary cornerstone is gaining ground in the global arena. Once overshadowed by its regional competitors, Thailand’s rice now takes center stage. The wheels of fortune have spun its way, and its prices are on a relentless ascent.
India halted non-basmati white rice exports
As India, the global rice export leader, halted its non-Basmati white rice exports, it ushered in a new era for Thai rice. This decisive move, coupled with Myanmar’s exporters abstaining from new contracts, has catapulted Thailand into a free global market. The ripple effect? Prices are scaling new heights with unwavering regularity. A significant twist in this narrative is the looming possibility of Myanmar suspending rice exports for two months. This turn of events has spurred Thai rice exporters into action, pushing the export offer price to a staggering 361.98 US dollars per tonne.
India, a formidable player in the rice export arena, satisfies a substantial 40-42 percent of the world’s rice demand. Its rice offerings are not just bountiful but also budget-friendly. Consequently, rice-exporting nations have grappled with the arduous task of competitive rice prices in this fiercely contested arena. However, a paradigm shift is underway, driven by India’s decision to halt white rice exports, coupled with a similar move by Myanmar. Both nations have hit the pause button, and come September, shipments will cease. Pakistan, another notable rice player, is in a conundrum with limited stock.
Surging prices in Vietnam
Adding fuel to the fire, Vietnam’s rice prices are also surging. This confluence of factors has led Thai rice exporters to revamp their strategy, necessitating an increase in the export offer price of their rice. This price uptick represents both an opportunity and a challenge for Thai exporters, who are now navigating uncharted waters. The seismic shift in the rice market’s landscape was set into motion by the Indian government’s announcement on July 20. It initiated the rise in rice prices, and subsequently, the government imposed a 20 percent export duty on Sela rice. Further, a minimum export price of $1200 per tonne was set for Basmati rice. The repercussions of India’s decision reverberate across the global rice market.
Thai rice is ready to make its mark globally
The continuous price surge has made it an uphill battle for exporters to forge new contracts, casting a veil of uncertainty over the global rice market’s future. In this shifting landscape, Thai rice emerges as a dynamic contender, ready to make its mark on the world stage.
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