Key Takeaways
- Indian 5% broken parboiled rice prices hit over one-year high.
- Vietnamese rice prices reach near two-month high due to demand expectations.
- Thailand's rice prices also rise, with exports potentially falling short of targets.
Asian rice export prices have surged, with key markets reporting significant increases. Indian 5% broken parboiled rice was quoted at $384-$389 per ton this week, marking a more than one-year high, according to a Mumbai-based exporter.
The rise in Indian prices is attributed to a stronger rupee and concerns over limited crop supplies, with production in several states declining due to below-normal rainfall, the exporter noted.
Vietnamese 5% broken rice prices have also seen a notable increase, reaching $440-$450 per metric ton on Thursday, its highest level since August 21. This rise is driven by expectations of stronger demand, particularly from the Philippines, which is expected to resume rice purchases from Vietnam from November, a trader based in Ho Chi Minh City said.
Thailand's 5% broken rice prices have reached their highest level since September 10, at $480 per ton, up from $465 to $468 last week. The arrival of vessels to collect rice shipments and additional purchases by some exporters have pushed prices higher, a Bangkok-based rice trader explained.
Flooding has delayed loading, while some exporters have had to buy additional rice as the off-season harvest nears its end, adding upward pressure on prices, the trader added.
Despite the price hikes, Thailand's rice exports could fall short of this year's 7-million-ton target amid competition from India and Pakistan and weaker demand from major buyers, according to the Thai Rice Exporters Association.
In Bangladesh, rice prices have also risen, driven by higher fuel costs and rising paddy prices. Fine rice has increased to 74-75 taka per kilogram from 72 taka a week earlier, adding to the financial strain on consumers already dealing with high living costs, a local trader reported.
These price increases are expected to affect the purchasing power of consumers and could impact the overall market dynamics in the coming months.
