MUMBAI/HANOI: Global rice prices dropped on Monday after India, the world’s largest exporter of the grain, allowed the resumption of non-basmati white rice exports, boosting global supply and providing relief to Asian and African buyers, exporters said.
India’s decision on Saturday to lift the export ban, along with Friday’s reduction of export duty on parboiled rice to 10%, was prompted by expectations of a new crop and increased inventories in state warehouses.
Following India’s move, rice suppliers from Thailand, Vietnam, and Pakistan have lowered their export prices to remain competitive, said Himanshu Agarwal, executive director at Satyam Balajee, a prominent rice exporter.
Global rice prices had surged to a 15-year high after India imposed the export ban and a 20% duty on parboiled rice last year. Competing suppliers, including Vietnam, Thailand, Pakistan, and Myanmar, had gained market share as a result, selling rice at elevated prices.
On Monday, India’s 5% broken parboiled rice was priced at $500-$510 per metric ton, down from last week’s $530-$536, while 5% broken white rice was offered at around $490 per metric ton. Exporters in Vietnam, Thailand, Pakistan, and Myanmar also reduced their prices by at least $10 per ton.
The Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia are among the major buyers of Asian rice.
Nitin Gupta, senior vice president of Olam Agri India, noted that buyers and sellers are currently assessing the impact of increased Indian rice supplies, with prices expected to stabilize throughout the week.
India accounted for over 40% of global rice exports in 2022, exporting a record 22.2 million metric tons.
