Indian rice export prices extend gain on higher reserve price, monsoon concerns

Indian rice export prices rose for a third straight week, on a higher reserve price for the commodity sold under the government's Open Market Sale Scheme (OMSS) and concerns ‌that weak monsoon ⁠rains ⁠could delay planting. India's 5% broken parboiled variety was quoted at $352-$357 per ton the week till Thursday, up from last week's $348-$352. Indian 5% broken white rice was priced at $353-$357.

"The market had expected lower OMSS reserve prices, but the government's decision to raise them lifted open market prices," said a Kolkata-based trader.

Farmers planted summer-sown ​rice on 11.5 million hectares as of July 10, ⁠down from ‌last year's 12.6 million hectares.


In Bangladesh, floods have ​damaged crops ​on at least 28,610 hectares across 12 districts, with paddy ⁠and rice seedbeds among the hardest hit.

"The current estimates are preliminary. The full extent of crop losses will become clear as the floodwaters recede," a Department of Agricultural Extension official said. Thailand's 5% broken rice was quoted at $445-$450, down slightly from $450 quoted last week, traders said.

"Buying has been limited to essential purchases, with the Philippines' temporary suspension of imports of Thai 5% broken rice further weighing on demand," a ‌Bangkok-based trader said.

Supply is gradually increasing as the dry-season rice harvest enters the market, although traders remain cautious over the potential ​impact of El ​Nino on production ⁠later this year. In Vietnam, 5% broken rice was offered at $445-$450 per metric ton on Thursday, unchanged from last week.

"Trading activity is slow as buyers ​are awaiting rising supplies from an ongoing harvest," a trader based in Ho Chi Minh City said.

Meanwhile, farmers said, the summer-to-autumn harvest will peak from the end of this month through August.