Rice in Asia saw a significant decline this week following India’s decision to ease export restrictions, leading to heightened competition in the region.
On Saturday, India, the world’s largest rice exporter, permitted the export of non-basmati white rice and reduced the export duty on parboiled rice from 20% to 10%.
“India’s decision has suddenly increased the supply, giving buyers a chance to pause and reassess the entire demand and supply situation,” noted a dealer based in Singapore.
This week, India’s 5% broken parboiled rice was priced at $494-$498 (16,270-16,400 baht) per tonne, the lowest level since November 9, 2023. In contrast, prices last week ranged from $528 to $534.
“The price drop is substantial due to the duty reduction, but buyers are still hesitant and waiting for market volatility to settle,” commented B.V. Krishna Rao, president of the Rice Exporters’ Association.
Additionally, India’s 5% broken white rice was quoted at $490 to $495 per tonne this week.
In Thailand, the price of 5% broken rice fell to $510-$515 per tonne, down from last week’s $550-$560, marking the lowest prices since June 2023. The drop was attributed to fluctuations in the baht and the easing of India’s export restrictions.
“The price dropped very sharply,” stated a trader in Bangkok, noting that buyers are holding off as they expect further price reductions from exporters following India’s announcement. He added that domestic prices remained stable due to anticipated strong supply resulting from favorable water levels.
Earlier this week, prices dipped as low as $500 as demand waned, according to another trader.
In Vietnam, 5% broken rice was offered at $552 per tonne on Thursday, down from $565 a week earlier, according to the Vietnam Food Association, marking the lowest prices seen in over a year.
“Prices declined after India relaxed its export restrictions, increasing supply in the global market,” said a trader in Ho Chi Minh City. “This could complicate Vietnam’s goal of exporting around 8 million tonnes of rice this year.”
Meanwhile, rice prices in Bangladesh remain high, with fresh flooding in the northern region posing a threat to crop yields.
