Home / Agriculture/ Asia Rice: Weak demand weighs on prices, India rates near 14-month low

Asia Rice: Weak demand weighs on prices, India rates near 14-month low

Comments / {{hitsCtrl.values.hits}} Views / Monday, 16 July 2018 00:00

  • Vietnam rates fall on summer-autumn harvest
  • India’s exports could ease from Oct. as Govt. ups buying prices

BENGALURU (Reuters): Weak demand and expectations of fresh supplies weighed on export prices for rice across most Asian hubs last week, while rates from top exporter India stayed near their lowest level in 14 months amid a weaker Indian rupee.

Rates for India’s 5% broken parboiled variety were steady at $ 388-$ 392 per ton, unchanged from last week.

“Bangladesh and Sri Lanka are not buying. African countries are making only small purchases,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

The Indian rupee has lost more than 7% so far in 2018, increasing exporters’ returns from overseas sales.

India raised prices paid to local farmers for paddy rice by 13% from a year ago to INR 1,750 per 100 kg.

The hike could dent the country’s exports from October by making new season cargoes expensive compared to supply from rival growers, industry officials said. In Vietnam, prices of 5% broken rice fell to $ 405-$ 420 a ton from $ 425-$ 430 a ton a week earlier.

“Prices are under downward pressure as the summer-autumn harvest is peaking and as Thai prices are lower,” a Ho Chi Minh City-based trader said.

Prices offered by Vietnam are under pressure to compete with lower Thailand prices.

Vietnamese customs data released on Thursday showed rice shipments from Vietnam in June fell 29.6% from May to 537,948 tons, down from a government forecast of 650,000 tons.

For the first half of this year, Vietnam’s rice exports rose 21.6% from a year earlier to 3.48 million tons.

In Thailand, prices of the benchmark 5% broken variety were in the range of $ 378-$ 395 compared with $ 385-$ 388 last week.

“Prices declined because the baht weakened and markets were quiet. Production continued to come in. Next week, it will probably be this way because it has been quiet,” one trader said.

Another trader said if the exchange rate is stable, prices will continue to remain in the range seen this week. 

Share This Article


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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


Today's Columnists

In the desert of Tamil films, actor Sivaji Ganesan was an oasis

Saturday, 22 September 2018

‘Indian Film,’ first published in 1963 and co-authored by former Columbia University Professor Erik Barnouw and his student Dr. Subrahmanyam Krishnaswamy, is considered a seminal study of the evolution and growth of Indian cinema. The book is cit

Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi

The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation

Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc

Columnists More