The Asian rice export markets were subdued this week, with rates in Thailand at their lowest level in 18 years due to subdued demand and ample supply from the new season’s crop, with fears emerging that the persistent low prices might lead farmers to grow less rice.
Thailand’s 5% broken rice was quoted at $335 per tonnes on Thursday, slightly down from $338 quoted last week, to its lowest since October 2007.
“Buyers have been purchasing only little amount due to news that India will be releasing more rice that is cheaper than Thai variety,” a Bangkok-based trader said, adding that farmers are now going to grow less rice due to the persisting low prices.
The supply situation also offers little relief in Thailand with more rice entering the market as the rainy season winds down.
India’s 5% broken parboiled variety was quoted this week at $344-$350 per ton, unchanged from the last week, while its 5% broken white rice was priced at $350 to $360 per ton.
“Supplies from the new season’s crop are starting to push local prices down, though the government’s been buying up stocks pretty aggressively,” said a New Delhi-based dealer with a trade house.
Vietnam’s 5% broken rice was offered at $415-$430 per ton, unchanged from a week ago, according to the Vietnam Food Association.
Sales are very slow due to weak demand, despite offering lower prices, said a trader based in Ho Chi Minh City.
Vietnam’s rice exports are forecast to be 8.8 million tons this year, state media on Thursday cited the association chairman Do Ha Nam as saying.
Meanwhile, Bangladesh has approved a proposal to import 50,000 metric tons of parboiled rice at $355.59 per tonne through a tender. The move aims to strengthen food security and ensure sufficient stock as the government struggles to control rising prices of rice.
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