Asian Rice Prices Decline Due to Exports

India’s recent easing of rice export curbs has led to a significant drop in Asian rice prices. The Food and Agriculture Organization (FAO) reported that whole-grain Indica rice prices have fallen between $0,12 and $0,86 per kg. This drop follows the Indian government’s decision on September 27-28 to allow white rice exports with a fixed USD 0,49 per kg minimum export price (MEP). Additionally, the export duty on parboiled, brown, and husked rice was reduced from 20% to 10%.

Thai and Vietnamese Rice Respond to Indian Changes

• Thai rice prices also saw a decline after India eased its restrictions.The price of 100% grade B white rice dropped to USD 0,52 per kg, while 5% white rice now stands at USD 0,51 per kg.
• Similarly, Vietnam’s 5% broken rice is priced at USD 0,52 per kg, while 25% broken rice is quoted at USD 0,51 per kg. Vietnamese farm-level prices have slightly declined due to recent weather conditions.

Competitive Pricing Keeps Demand Strong

Indian parboiled rice is currently available from Kandla at USD 0,41 per kg. Trade analysts attribute this competitive pricing to a surplus in the public distribution system and forced sales below the minimum support price (MSP). “We’ve been flooded with orders, especially since Indian rice maintains its high quality,” says Rajesh Jain Paharia, a Delhi-based exporter.

The Global Impact on Rice Prices

Analysts have noticed a narrowing price gap between Indian and Thai rice. S. Chandrasekaran, a trade expert, points out that the premium between the two has shrunk to just USD 0,02 to USD 0,03 per kg. He explains, “The market is watching to see how this reduced premium plays out in the long run.” Parboiled rice from India is now quoted at USD 0,50 per kg, compared to Thailand’s price of USD 0,52 per kg and Pakistan’s USD 0,55 per kg.

Conclusion: Buyers Will Be Benefited

India directly competes with other major players like Thailand and Pakistan. It will be interesting to see how this impacts the global rice market in the coming months. It is expected that this healthy competition will be beneficial to the buyers.





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