Asia rice: Indian prices hit more than one-year high on strong rupee, tight supply

Indian rice export prices reached their highest level in over a year this week, driven by a stronger rupee and limited supply. The 5% broken parboiled variety was quoted at $387-$392 per ton, up from $384-$389 the previous week. Indian 5% broken white rice fetched $389 to $394 per ton. A Kolkata-based exporter explained that the Indian rupee's steady appreciation over recent days prompted traders to raise export prices to account for the exchange-rate shift.

Rice production in India is expected to decline this year for the first time in a decade, and by the most in nearly two decades, as below-normal rainfall during the crop's maturation period threatens to lower yields, according to industry officials. Meanwhile, Vietnam's 5% broken rice was offered at $440-$450 per metric ton, flat from the week before. External demand is steady, with more orders anticipated from the Philippines in mid-November, according to a trader in Ho Chi Minh City.

In October, Vietnam exported 228,871 tons of rice, bringing its total shipments this year to 6.6 million tons valued at $3.2 billion, as reported by the government's customs data. Thailand's 5% broken rice was quoted at $480 per ton, unchanged from the previous week, traders said. The surge in prices is attributed to demand from the Philippines and vessels arriving to load rice, which has pushed prices up slightly.

However, supply is currently being harvested in some areas, and a trader noted that waiting to see the impact on production once floodwaters recede is necessary. Rice prices in Bangladesh have remained elevated due to rising fuel costs, while aromatic rice prices surged despite the government's decision to cut approved export quotas by 50%.

These price hikes have placed additional financial strain on consumers already facing persistently high inflation.