BENGALURU /MUMBAI/BANGKOK/HANOI AND BANGLADESH: Rice export prices in Asia dropped sharply this week after India, the world’s largest exporter of the staple, eased restrictions on exports, increasing competition in the region.

India on Saturday allowed exports of non-basmati white rice, a day after cutting export duty on parboiled rice to 10% from 20%.

“India’s decision suddenly increased supplies. It is giving buyers a breather to slow down and rethink the whole demand and supply situation,” said a Singapore based dealer.

India’s 5% broken parboiled variety was quoted at $494-$498 per ton this week, the lowest since Nov. 9, 2023. Last week, traders were offering rice between $528-$534.

“Prices have dropped a lot thanks to the duty cut, but buyers are still holding off, waiting for things to calm down in the market,” said B.V. Krishna Rao, president of the Rice Exporters’ Association. Indian 5% broken white rice was quoted $490 to $495 per ton this week. Thailand’s 5% broken rice tumbled to $510-$515 per ton from last week’s $550-$560, its lowest since June 2023, due to fluctuations in the baht and India lifting its export ban.

Published Date: October 4, 2024