By Ashitha Shivaprasad

MUMBAI/BANGLADESH/BANGKOK/HANOI- Rice export prices in India extended losses this week to hit their lowest level in 15 months, due to depreciation in the rupee and rising supplies.

Top exporter India’s 5 percent broken parboiled variety was quoted at $442-$449 per ton, the lowest since July 20, 2023 and down from the last week’s $450-$484. Indian 5 percent broken white rice was quoted $449-$455 per ton.

The competition among rice-exporting countries has intensified after India’s export duty move – demand remains strong, but buyers are seeking rice at a lower price, said a New-Delhi based trader.

Indian exporters were lowering prices because of depreciation in rupee and as new season supplies are bringing down paddy prices, he added.

Earlier this month, India scrapped the export tax on parboiled rice and removed the floor price for the export of non-basmati white rice to boost exports.

Elsewhere, Bangladesh is considering a further reduction in tariffs on rice imports as local prices continue to soar, officials said.

Despite recent allowances, which lowered tariffs, traders have shown limited interest, primarily due to high import costs exceeding 65 Taka ($0.5462) per kg. In response, officials are proposing to lower the tariff to 5 percent to encourage more private sector involvement and to alleviate the burden on consumers facing high prices.

Meanwhile, Thailand’s 5 percent broken rice slipped for a second consecutive week to $485-$495 per ton, down from last week’s $510. Traders attributed the fall to a weaker baht and currency fluctuations.

Recently, with Thai rice being cheaper than Vietnam rice, it stands a chance of winning an auction from Indonesia, said a Bangkok-based trader.

Indonesian state purchasing agency Bulog had issued an international tender to buy 500,000 metric tons of rice.

Vietnam’s 5 percent broken rice were offered at $520-$525, versus last week’s $532, traders based in the Mekong Delta region, the country’s rice bowl said.

“Traders are waiting for Indonesia’s Bulog’s decision. Successful bidders are scheduled to be announced on November 3,” said a trader.

Meanwhile, Singapore-based Olam Group said on Friday that Saudi Agricultural and Livestock Investment (SALIC) had made an offer to buy its remaining stake in Olam Agri

The offer comes almost two years after the group completed the sale of a 35.43 percent stake in Olam Agri to SALIC for $1.24 billion in December 2022. The transaction had given Olam Agri an equity valuation of $3.5 billion.

Olam Group currently holds a stake of 64.57 percent in Olam Agri.

One of the world’s biggest agricultural commodity traders, Olam Group said it was currently exploring a potential sale of its stake in the agriculture business, Olam Agri.

The group said no definitive terms or formal legal documentation had been agreed upon yet.

In August 2023, the group said Olam Agri aimed for a dual listing in Singapore and Saudi Arabia by the first half of 2024. However, the process has been delayed due to regulatory bottlenecks.

The company said it would continue to monitor various conditions guiding its decision concerning the IPO and concurrent demerger for Olam Agri. -Reuters

Published Date: November 4, 2024