Indian rice export rates rise to one-year high as lower rainfall fuels supply woes

Indian rice export prices this week extended their gains to the highest level in a year, as below-normal rainfall raised ‌concerns over production ⁠amid tightening ⁠supplies, while Vietnamese and Thai rates also rose.

"Crop prospects are deteriorating every week. The southern states need rainfall ​now, or crop productivity will suffer significantly," said a Mumbai-based dealer with a global trade house.

Also read: India seeks applications for remaining raw sugar import quota


India is likely ​to receive below-average monsoon rainfall in September after August precipitation came in 16% below normal, the weather department said on Monday.

India's 5% broken parboiled variety was quoted at $369-$375 per ton ​this week, up from last week's $366-$371. Indian 5% broken ⁠white rice ‌was priced at $364-$369 per ton.

Meanwhile, Thailand's 5% broken rice was quoted at $483-$485, up ​from $465 per ​ton last week, traders said.

There is continuous demand coming in from ⁠Malaysia and the Philippines, a Bangkok-based trader said.

There was new demand ​from Iraq, bought through Turkey and Jordan, which made markets lively, ​the trader said, adding main crop rice supply will come out from mid-October to December, and there shouldn't be any issues from the Northeast and the Chao Phraya river basin provinces.

Vietnam's 5% broken rice was offered at $440-$445 per ton on Thursday, up slightly from $438-$442 a week ago.

"We are hearing the Philippines, Vietnam's largest buyer, is ramping up their imports ‌during the rest of this year on concerns about El Nino," a Ho Chi Minh City-based trader said.

Also read: India can unlock over USD 1.5 billion wheat export opportunity as global buyers diversify sourcing: ASSOCHAM

However, trading activity remains quiet, the trader ​added.

Vietnam's August ​rice exports fell 36.1% ⁠from a year earlier to 544,000 tons, government data showed. The country's total rice shipments during January to August fell 4.9% from a year earlier to 6.04 million tons.

Elsewhere, Bangladesh's rice ​prices have remained stubbornly high despite ample stocks, putting continued pressure on consumers.

Although increased imports have recently helped bring down wholesale prices, the decline has yet to translate into meaningful relief at the retail level, leaving consumers to bear the brunt of persistently high prices.