Indonesian Demand Drives Increase in Thai Rice Prices, Indian Rates Stay Depressed Despite Ample Supply
Rice prices from Thailand saw an uptick this week, supported by robust demand from Indonesia, while Indian rates remained stagnant near a two-month low due to subdued buying activity.
The price of Thailand’s 5% broken rice surged to $585-$590 per ton from the previous week’s $570, driven by increased demand from Indonesia, according to traders.
Traders noted that although new supplies were still being harvested, prices remained firm due to sustained demand from Indonesia. Buyers in Indonesia were turning to Thailand, Vietnam, and Pakistan for their rice imports.
In contrast, India, the leading rice exporter, saw its 5% broken parboiled variety quoted at $540-$548 per ton, hovering near a two-month low. Prices had spiked to a record high of $560 last month following changes in the calculation method for export duty, resulting in higher levies.
A Mumbai-based exporter highlighted that while local supplies in India remained sufficient, demand had slowed from buyers in Asia and Africa in recent days.
Furthermore, Indian exporters faced unexpected tax demands from customs authorities related to duty differentials on rice exported over the past 18 months, posing potential challenges to rice shipments from the country.
Vietnam’s 5% broken rice remained steady at $580 per metric ton, with domestic paddy prices slightly increasing amid signs of diminishing supplies and concerns over saltwater intrusion affecting rice production in some Mekong Delta provinces.
Despite good yields and record reserves, rice prices in Bangladesh remained elevated, prompting the government to authorize private traders to import nearly 100,000 tonnes of rice to stabilize prices.
