With Indian rice no longer significantly cheaper, buyers seek other options

(Reuters) — Rice export prices in Thailand rose to their highest level in two months this week on the back of a stronger baht, while floods in Bangladesh raised supply concerns.

Thailand’s 5% broken rice was quoted at $580 per ton, up from $570 quoted last week.

This is due to exchange rate with baht appreciation, said a Bangkok-based trader, who described the market as “quiet.”

Deliveries were being made for previous orders and there were no issues with supply due to good water levels, the trader said.

Meanwhile, rice prices in Bangladesh remained elevated and may rise further as floods are expected to impact crop production and supply across the country.

The death toll from devastating floods in Bangladesh was at 23, officials said on Monday.

Vietnam’s 5% broken rice was offered at $578 per ton, unchanged from last week, according to the Vietnam Food Association.

“Trading activity is quiet ahead of a long holiday that begins this weekend,” a trader based in the Mekong Delta province of An Giang said.

“Traders are also staying on the sideline waiting for the bidding results from Bulog, likely on Sept. 5.”

Last week, Indonesian state purchasing agency Bulog issued an international tender to buy about 350,000 tons of rice.

Top exporter India’s 5% broken parboiled variety was quoted at $540-$545 per ton this week, also unchanged from the previous week.

“A few months ago, Indian rice was significantly cheaper than rice from other origins. Now, that difference has come down to just $10 to $30 per ton. Buyers are looking for other options,” said a New Delhi-based dealer with a global trade house.

India has raised the price at which it will buy new-season common rice paddy from farmers by 5.4% to 2,300 rupees per 100 kg.

Published Date: August 29, 2024