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July 2024

India rice prices climb as demand increases

INDIA’s rice export prices rose to a near three-month peak this week as demand picked up, and the government raised the paddy procurement price for the new season.

India on Wednesday raised the price at which it will buy new-season common rice paddy from farmers by 5.4 percent to 2,300 rupees ($27) per 100 kilogram.

“With the hike in paddy prices, export prices of rice will also go up. Overseas buyers will still make purchase. Even after factoring in the hike, Indian rice is cheaper than rice from other origins,” a Mumbai-based trader said.

Top exporter India’s 5 percent broken parboiled variety was quoted at $544-$552 per ton, up from last week’s $539-$546.

Vietnam’s 5 percent broken rice was offered at $570 per ton, down from $570-$575 a week ago.

“Trading activity is weak as buyers are halting their purchases to wait for the Philippines to officially cut its import tariff on rice,” a trader based in the Mekong Delta said.

“We heard the Philippines’ decision to cut the tariff is pending final approval from its president, likely in July or September.”

Traders said export prices were also moving in tandem with domestic paddy prices amid an ongoing harvest in the Mekong Delta area, which will end in early July.

Thailand’s 5 percent broken rice slipped to $615-$620 per ton from last week’s $630.

Prices came down slightly due to weaker demand because Thai rice prices were higher than Vietnam, a Bangkok-based trader said.

A second crop coming out next month should have good yield due to good rainfall, another trader said, adding that prices could weaken to $610-$615.

Meanwhile, in northeastern Bangladesh, large swathes of land have been submerged due to flash floods from heavy rainfall and upstream water from India, potentially jeopardizing rice crops if the water remains for an extended period, officials said. QR Code

Published Date: June 22, 2024

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