Rice export prices in Asia dropped sharply this week after India, the world’s largest exporter, eased restrictions on exports, increasing competition.
India on Saturday allowed exports of non-basmati white rice, a day after cutting its export duty on parboiled rice to 10% from 20%.
“India’s decision suddenly increased supplies. It is giving buyers a breather to slow down and rethink the whole demand and supply situation,” a Singapore-based dealer said on Thursday.
Indian 5% broken parboiled variety was quoted at $498 per tonne this week, the lowest since Nov 9, 2023. Last week, traders were offering rice between $528 and $534.
“Prices have dropped a lot thanks to the duty cut, but buyers are still holding off, waiting for things to calm down in the market,” said BV Krishna Rao, president of the Rice Exporters’ Association.
Indian 5% broken white rice was quoted $490 to $495 per tonne this week.
Thai 5% broken rice has tumbled to $515 per tonne from $560 a week ago, its lowest since June 2023, due to fluctuations in the baht and India lifting its export ban.
“The price dropped very suddenly” a Bangkok-based trader said, as buyers waited for exporters to lower prices after India lifted its export ban, adding that domestic prices remained stable with strong supply expected due to good water levels.
Prices reached as low as $500 earlier in the week as demand slowed, said another trader.
Vietnamese 5% broken rice was offered at $552 per tonne on Thursday, compared to $565 a week ago, according to the Vietnam Food Association. Prices are at their lowest in over a year.
“Prices fell after India relaxed its restrictions on rice exports, boosting supplies in the international market,” a trader based in Ho Chi Minh City said.
“This could pose a challenge for Vietnam to reach its target of exporting around 8 million tonnes of rice this year.”