ASIA RICE-India rice hits three-year low on weak rupee, supply glut
Indian rice prices have dropped to a three-year low due to a weak rupee and oversupply, with 5% broken parboiled rice priced at $369-$374 per ton. The rupee's decline is enabling competitive pricing against other countries. Additionally, the Philippines has suspended rice imports, impacting demand for Vietnamese rice, which is now priced at $391 per ton. The U.S. has announced a doubling of import taxes on Indian goods, further affecting demand. Thailand's rice prices remain stable at $370 per ton, while Bangladesh's rice reserves are stable.
Thai rates hold steady
Vietnam rates fall to $391 per ton
Philippines’ rice import-pause pressuring rates- Vietnam trader
Aug 7 (Reuters) - Indian rice prices fell this week to their lowest level in three years on rupee weakness and ample supplies, while Vietnam rates also fell as the Philippines suspended imports to protect its farmers.
India’s 5% broken parboiled variety (RI-INBKN5-P1) was quoted at $369-$374 per ton, lowest since August 2022, down from the last week’s $375-$380. Indian 5% broken white rice was priced at $360-$368 per ton.
“The falling rupee is allowing traders to reduce export prices and remain competitive against supplies from competing countries,” said B.V. Krishna Rao, president of the Rice Exporters’ Association (REA).
The Indian rupee was trading near a record low this week.
“The demand for Indian rice from the United States could moderate as U.S. President Donald Trump announced doubling the import tax on Indian goods,” Rao added.
The new import tax, effective August 28, will raise duties to 50% - among the highest levied on any U.S. trading partner - on some Indian imports.
Vietnam’s 5% broken rice (RI-VNBKN5-P1) was offered at $391 per metric ton on Thursday, according to the Vietnam Food Association down from $395-$400 per ton last week.
“The Philippines’ move to suspend rice imports is not good news for exporters, as it is the largest market for Vietnamese rice,” a trader based in Ho Chi Minh City said.
Government data on Wednesday showed Vietnam’s rice exports in July rose 4.2% from a year earlier to 782,000 tons. For the first seven months of this year, Vietnam’s total rice shipments rose 3.7% from a year earlier to 5.5 million tons.
Thailand’s 5% broken rice (RI-THBKN5-P1) held at $370 from the range of $370 to $ 375 per tonne.
Buyers were delaying decisions because of an announcement by India to release up to 7 million tonnes of rice, while the Philippines is putting further pressure, a Bangkok-based trader said.
Meanwhile, Bangladesh’s rice reserve remained stable, with the government already having surpassed its summer procurement targets.
