Global rice prices drop as India lifts export ban

Exporters in Vietnam, Pakistan, Thailand and Myanmar also lowered prices by at least $10 (£7.51) per tonne on Monday, dealers said.

• Eastern Eye
• 02 October, 2024

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By: Eastern Eye

GLOBAL rice prices fell on Monday (30) after India, the world’s top rice exporter, approved the resumption of exports, increasing global supply and offering more affordable options for buyers in poorer Asian and African countries, exporters said.

Last Saturday (28), India allowed the export of non-basmati white rice, following last Friday’s (27) reduction of export duty on parboiled rice to 10 per cent. This decision was influenced by an upcoming harvest and higher inventories in state warehouses.

“Suppliers from Thailand, Vietnam, and Pakistan are responding to India’s move by lowering their export prices,” said Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter.

“Everyone’s trying to stay competitive to hold their spot in the market.”

Global rice prices had surged to a 15-year high after India’s decision last year to ban white rice exports and the imposition of a 20 per cent duty on parboiled rice.

The curbs allowed other suppliers like Vietnam, Thailand, Pakistan, and Myanmar to gain market share and raise prices.

On Monday, India’s 5 per cent broken parboiled rice was priced at $500 (£375.48)-$510 (£382.98) per metric tonne, down from last week’s $530 (£398)- $536 (£402.51). Five per cent broken white rice was offered around $490 (£367.96).

Exporters in Vietnam, Pakistan, Thailand and Myanmar also lowered prices by at least $10 (£7.51) per tonne on Monday, dealers said.

The Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia are key importers of Asian rice. Buyers and sellers are assessing the impact of increased Indian rice supplies, with prices expected to stabilise later this week, said Nitin Gupta, senior vice-president of Olam Agri India.

India accounted for more than 40 per cent of the world’s rice exports in 2022, shipping a record 22.2 million metric tonnes out of a global total of 55.4 million metric tonnes.

Thai rice prices were quoted at $540 (£405.53)- $550 (£413.04) on Monday, down from last week’s $550 (£413.04)-$560 (£420.46). However, the appreciation of the Thai currency could limit further price reductions, said Chukiat Opaswong, honorary president of the Thai Rice Exporters Association.

While rice prices have begun to correct in Vietnam, traders caution that the full impact of Indian supplies is still unfolding.

“Vietnamese exporters should remain calm and avoid slashing prices just to secure contracts,” said Truong Tan Tai, chief executive of Vinarice Co.