India is set to resume exports of non-basmati white rice as inventories surge in the world’s largest grain exporter and farmers get ready to harvest a new crop.
According to a government order, New Delhi has established a floor price for non-basmati rice exports at $490 per tonne.
Additionally, India announced on Friday a reduction in the export duty on parboiled rice from 20% to 10%, a move that is expected to lower export prices, increase shipments, and compel competing nations such as Thailand, Vietnam, Pakistan, and Myanmar to lower their prices as well.
In 2023, India implemented various restrictions on rice exports, which continued into 2024 to stabilize local prices ahead of the national elections scheduled for April to June.
Earlier this month, the government lifted the floor price for basmati rice exports in an effort to assist thousands of farmers who expressed concerns about limited access to lucrative markets in Europe, the Middle East, and the United States.
This week, Thai rice export prices sank to a 14-month low due to weak demand and fierce competition from cheaper alternatives, while Indian prices saw a slight increase driven by a stronger rupee, despite sluggish interest from Asian and African buyers.
The benchmark 5% broken rice from Thailand was quoted at $560 per tonne, the lowest since July 20, 2023, down from $565 the previous week.
While there is demand from Indonesia, many competitors are opting to buy rice from other exporters at lower prices, according to a Bangkok-based trader, who added that the depreciation of the baht would help ease prices.
Commerce Minister Pichai Naripthaphan mentioned that the effects of the baht’s surge on exports would become apparent in the next three months, particularly in the agricultural sector.
