Home / Agriculture/ Asia Rice: India prices dip as Bangladesh production recovers

Asia Rice: India prices dip as Bangladesh production recovers


Comments / {{hitsCtrl.values.hits}} Views / Monday, 11 June 2018 00:00


 

  • Vietnam prices jump to over 6-year high
  • Tepid demand for Thai variety

 BENGALURU (Reuters): Rice export prices in India fell last week to their lowest this year on sluggish demand before top buyer Bangladesh slapps import duty on exports of the grain after domestic production recovered.

Rates for India’s 5% broken parboiled variety fell by $ 6 to $ 393-397 per ton.

Bangladesh is imposing a 28% tax on rice imports to support its farmers after local production revived, Finance Minister Abul Maal Abdul Muhith said.

He said 25% customs duty and 3% regulatory duty would be imposed on rice imports.

Indian exporters said they were going to lose competitiveness due to the duty hike. India was the biggest supplier of rice to Bangladesh in 2017.

“Exports to Bangladesh would become nearly impossible if it raises the import duty,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

In Vietnam, prices of 5% broken rice climbed to their highest since January 2012 at $ 465-475 a ton, versus $ 455-$460 a week earlier, despite an ongoing mini-harvest.

“Prices are too high for any deals to be clinched while supplies remain tight, though the spring-summer harvest has begun,” a Ho Chi Minh city-based trader said.

Output from the ongoing harvest is low while the rice quality is not very high, traders and farmers in southern Vietnam said.

“Exporters are now only looking at government-to-government deals,” the trader said, adding that the Vietnamese Government was not buying output from the current harvest for stockpiling.

Elsewhere in Southeast Asia, Thailand’s benchmark 5% broken rice narrowed to $ 430–432 per ton, free on board (FOB) Bangkok, compared with $ 430–446 in the previous week.

Thai rice traders said that demand has been flat with no new interest registered from overseas this week.

“We probably have to wait until after Ramadan to see if there is fresh demand from Africa,” a Bangkok-based trader said, referring to the Muslim fasting month.

African markets usually import parboiled rice from Thailand every year, but the same trader said the demand from there has been slowed in the first half of this year.

Thailand’s commerce ministry said the country had exported 4.98 million tons of rice from the beginning of the year until 1 June.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Challenges in preserving and promoting Pakistan’s Buddhist past

Saturday, 20 October 2018

The international media has been portraying Pakistan as a hotbed of Islamic fundamentalism, especially after the Americans carried out a surgical strike there to kill international terrorist and fugitive, Osama bin Laden.


Government’s cohabitation stuck in the past or what?

Friday, 19 October 2018

The appointment of career judge Nalin Perera as the new Chief Justice, who has served in the judiciary for over 30 years, provides a snapshot into President Maithripala Sirisena’s thought process, amidst various stories of clashes with his coalitio


Profit before principle: Khashoggi and US-Saudi relations

Friday, 19 October 2018

The mysterious disappearance of a Saudi journalist, Jamal Khashoggi, from inside the Saudi Embassy complex in Turkey on 2 October and an array of circumstantial evidence surrounding his disappearance lead one to suspect that Jamal was possibly abduct


When shame and honour take the hypocritical centre stage

Friday, 19 October 2018

As human beings, we experience a gamut of emotions. These help individuals to express themselves, and authorities to exercise control over entire societies. The most common feelings engendered by our race span a spectrum from guilt and shame to fear.


Columnists More