India’s rice export prices reach 5-year high

Prices of rice exported from top hub India extended their rally to a fresh five-year peak this week on supply concerns.

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On account of supply worries, the price of rice exported from India’s primary hub increased this week to a new five-year peak, while Thailand and Vietnam’s rates remained close to two-year highs. The price for India’s 5% broken parboiled type increased from $409 to $416 per tonne last week to $412 to $420 per tonne.

India’s exporter increases farmer payments amid El Nino threat, causing global prices to reach their highest in 11 years. In the same range as the previous week, Vietnam’s 5% broken rice was auctioned on Thursday for $500-$510 per tonnes. A merchant from Ho Chi Minh City stated, “Demand is strong and exporters are rushing to buy paddy from farmers for their export contracts,” adding that the level of demand might remain high until the end of the year.

According to a senior representative of the Vietnam Food Association, this year’s rice exports will surpass 6.5 million tonnes but still fall short of the 7.1 million tonnes exported in 2017. 

According to preliminary shipping statistics, 95,200 tonnes of rice were scheduled to be loaded at the port of Ho Chi Minh City between July 1 and 12, with the majority of the cargo going to Africa, Indonesia, and the Philippines. Prices for Thailand’s 5% broken rice remained constant at $515 per tonne. Bangladesh’s rice output exceeds 21.5 million tonnes this year, but rising local prices challenge Dhaka’s efforts to control the staple.