Indian rice export rates rise to one-year high

Indian rice export prices soared to the highest level in a year, driven by below-normal rainfall and tightening supplies, according to a Mumbai-based dealer. The situation is worsening weekly, with the southern states particularly in need of rain to prevent significant crop productivity loss, the dealer noted.

Crop prospects are deteriorating rapidly, as suggested by the quoted prices for 5% broken parboiled rice, which rose from $366-$371 to $369-$375 per ton this week. Indian 5% broken white rice also saw an increase, moving from $364-$369 to $369-$375 per ton.

Thailand's 5% broken rice prices followed suit, jumping from $465 per ton to $483-$485 per ton over the same period, attracting new demand from Iraq through Turkey and Jordan. Vietnam's 5% broken rice prices also rose, from $438-$442 to $440-$445 per ton, with the Philippines, Vietnam's largest buyer, expected to ramp up imports due to El Nino concerns.

However, trading activity remains subdued, and Vietnam's August rice exports dropped 36.1% year-over-year to 544,000 tons, with total shipments from January to August falling 4.9% to 6.04 million tons. Bangladesh's rice prices have remained high despite abundant stocks, continuing to put pressure on consumers.