Agri Business

Strong rupee lifts India rice prices to 3-month peak; Thai rates slip

Reuters October 22 | Updated on October 22, 2021

Vietnam’s 5% broken rice stayed unchanged from a week earlier

Rice export prices in India rose to their highest level in nearly three months this week as the rupee appreciated amid a shortfall in supply, while higher shipping costs and a weaker baht dragged Thai rates lower.

India’s 5 per cent broken parboiled variety was quoted at $362 to $365 per tonne this week, its highest since late July, up from last week’s $360 to $363 per tonne.

“Prices have moved up a bit because of the rising rupee. Demand is there, but supply is limited,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

The rupee was trading near its highest level in two weeks, trimming returns from overseas sales for traders in the world’s biggest exporter of the staple.

Thai price narrows

Thailand’s 5 per cent broken rice prices narrowed to $385 to $390 per tonne on Thursday, from $385–$420 per tonne last week, with traders attributing the dip to fluctuation in the currency exchange amid moderate demand.

Lingering concerns over the high cost of shipping is a major challenge for Thai rice exporters, a rice trader said.

Also see: India is China’s top rice supplier during January–August this year

“Demand has been muted because it is very difficult to ship rice due to high cost. Because of this logistic problem, buyers are turning to our competitors whose prices are more attractive,” the same trader said.

Another trader said more supplies of rice are expected at the beginning of November, which could pressure prices further.

Vietnam sees activities pick up

Meanwhile, Vietnam’s 5 per cent broken rice stayed unchanged from a week earlier at $430–$435 per tonne.

“Export activities are picking up pace after most of the coronavirus movement restrictions are lifted,” a trader based in Ho Chi Minh City said.

In Bangladesh, farmers have expanded rain-fed rice cultivation this year, encouraged by favourable weather and better prices for the staple in the domestic markets.

Published on October 22, 2021

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