Commodities

Indian rice export rates grind to 16-month lows as supplies grow

Reuters July 15 | Updated on July 16, 2021

Coronavirus movement curbs impact sales in Vietnam

Indian rice export prices hit a nearly16-month low this week as new supplies come into market but demand remains low, while coronavirus restrictions in Vietnam undercut sales of the staple grain.

Top exporter India's 5% broken parboiled variety <RI-INBKN5-P1> was quoted in the $364-$368 per tonne range this week, extending its slide from last week's $367-$371. “Export demand is weak. Rice supplies have risen after government started distributing rice to poor people,” said an exporter based at Kakinada in Andhra Pradesh. Indian farmers have planted rice on 11.5 million hectares as of July 9.

Vietnam's 5% broken rice rates <RI-VNBKN5-P1> were unchanged from last week at $465-$470 per tonne- lowest level since July last year. “Farmers have started harvesting their summer-autumn crop in most of the Mekong Delta area, but sales to traders are slow due to coronavirus movement curbs,” a trader based in Ho Chi MinhCity said.

Also read: Pakistan Basmati rice exports to EU face trouble over pesticide residue

Traders said domestic unhusked paddy prices may fall over the coming weeks as supplies from the harvest build up, while movement curbs are expected to remain in place. “Some of the traders have stopped buying rice from farmers due to coronavirus,” another trader in the city said.

Bangladesh has allowed private traders to import 1 million tonnes of rice to tame prices, according to the food ministry. The country imported 1.3 million tonnes of rice in the year to June, the highest volume in three years.

Weak baht

Thailand's 5% broken rice <RI-THBKN5-P1> prices dropped to the lowest level since December 2019 at $405-$412 per tonne from$410-$425 per tonne a week ago. Bangkok-based traders said a depreciation of the Thai baht against the U.S. dollar continued to lower export prices.

Thailand has exported around 1.78 million tonnes of ricebetween January and May this year, down 31% from the same period a year ago, government data showed

Published on July 16, 2021

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