Asia Rice: India rates climb to 1-year highs on African demand, poor monsoon rains

Indian rice export prices climbed further this week to their highest level in a year on improved demand from African buyers and concerns over the new-season harvest ‌due to below-normal monsoon ⁠rainfall.

India's 5% ⁠broken parboiled variety was quoted at $364-$369 per ton this week, up from last week's $362-$368. Indian 5% broken ​white rice was priced at $360 to $365 per ton.

"Concerns over production are rising as the rainfall deficit continues ​to widen. The crop now needs ample moisture, but rainfall remains inadequate in many states," said a Kolkata-based exporter.


India has received 13% below-average rainfall since the start of the monsoon season ​on June 1.

Thailand's 5% broken rice was quoted at $450-$460 ⁠per ton, ‌widening from $450-$455 last week, according to traders.

The range widened as some ​demand emerged ​from the Philippines and Africa, although overall buying remained limited to immediate needs, ⁠traders said.

Philippine buyers continued to source much of their rice from ​cheaper suppliers in Vietnam, while African demand was focused partly on ​parboiled rice, a Bangkok-based trader said.

New-crop supplies were gradually entering the market, particularly from the Chao Phraya basin, with traders reporting no significant supply concerns.

Rice prices in Bangladesh have remained high despite strong reserves and adequate supplies. Government stocks have risen to more than 2 million metric tonnes, while imports have also helped ensure sufficient availability in the market.

However, ‌consumers have not seen a drop in retail prices, with several varieties of rice continuing to sell at elevated prices.

Meanwhile, Vietnam's 5% broken rice ​was offered at $435-$455 per ​metric ton on Thursday, ⁠unchanged from a week ago. The Vietnam Food Association has sent a delegation to the Philippines, seeking to restore shipments of Vietnamese rice to its market following the Philippines' recent moves to ​limit imports from the country, a trader based in Ho Chi Minh City said. Vietnam exported 230,273 tons of rice in the first half of August, raising the country's total rice shipments this year to August 15 to 5.73 million tons, according to customs data.