Rice export prices in India and Thailand strengthened this week as gains in local currencies prompted traders to raise prices of the staple, while Bangladesh will likely struggle to compete with top exporters despite a slide in domestic rates.

India's 5 percent broken parboiled variety was quoted around $366-$369 per tonne this week, up from last week's $364-$367.

“For the last few weeks demand is weak. Buyers are reluctant to make purchases at current price level,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

The Indian rupee hit the highest level in more than seven weeks on Wednesday, reducing exporters' margins from overseas sales.

The late arrival of monsoon rains in India could also delay planting of summer-sown rice, dealers said.

In the world's second largest exporter, Thailand, benchmark 5 percent broken rice prices narrowed to $393-$402 a tonne on Thursday, free on board Bangkok (FOB) from $385-$402 last week.

“The baht is stronger and this is the only factor that is influencing the price right now,” a Bangkok-based trader said.

Demand for the Thai variety has, however, remained flat since the start of the year, with traders not expecting any major changes in the short and medium term.

“In the past, demand used to pick up towards the end of the Muslim holy month of Ramadan but this year there has been no sign of that,” another Bangkok-based trader said.

Bangladesh

Bangladesh, meanwhile, will find it difficult to export rice given the country's produce was expensive even after a fall in domestic prices, traders said.

“Overall rice export markets are dull now. Moreover, we'll have to compete with India and Thailand. They can offer less than us even after the fall,” a trader in Dhaka said.

The South Asian country last week lifted its long-standing ban on rice exports, hoping to sell as much as 1.5 million tonnes to support farmers following a drastic drop in domestic prices.

“Bangladesh's rice is very expensive compared to supplies from India or Thailand. At the market price no one will buy it,” said a Mumbai-based dealer with a global trading firm.

Vietnam

In Vietnam rates for 5 percent broken rice were quoted around $350-$360 a tonne on Thursday, compared with $350 last week, traders said. ”Prices of the winter-spring harvest edged up due to low supplies, while prices of the ongoing summer-autumn harvest remained flat from last week,” a trader based in Ho Chi Minh City said.

Buyers from Philippines have purchased the winter-spring harvest rice strongly over the past few weeks to get the remaining supplies of winter produce, which is of higher quality than the summer-autumn harvest, the trader said.

However, shipments from Vietnam are expected to be moderate for the rest of this month before the summer-autumn harvest peaks, according to traders.

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