India's Rice Export Prices Hit One-Year High as Monsoon Rainfall Falls Short
Indian 5% broken parboiled rice rose to $371-377 per tonne this week, the highest in a year, after August rainfall came in 16% below normal and crop estimates were cut. Thai quotes also rose to $488 per tonne while Vietnam held at $440-445. Bangladesh halved its approved aromatic rice export quota and set a minimum export price of $1.60 per kilogram.
Rice export prices in India climbed to a one-year high this week, with below-normal rainfall and shrinking crop estimates behind the move, according to Dainik Jagran. The publication linked the increase to concerns over the summer-sown crop and to tighter available supply.
India's 5% broken parboiled rice was quoted at $371-377 per tonne this week, against $369-375 per tonne a week earlier. The export price for 5% broken white rice stood at $368-373 per tonne.
Monsoon shortfall cuts crop estimates
India's meteorological department said on Monday that August rainfall was 16% below normal and that monsoon rain in September is also expected to come in below normal, Dainik Jagran reported. Summer-sown rice draws most of its water from the monsoon, and a shortfall across both months narrows the window for the crop to recover.
A Kolkata-based dealer working with a global trading house told media that production forecasts are being reduced as the rainfall deficit widens, and that prices are rising in response. No revised official output figure was published alongside the report.
Vietnam steady, Thailand higher
Vietnam's 5% broken rice was quoted at $440-445 per tonne on Thursday, unchanged from the previous week. A trader in Ho Chi Minh City said domestic supply is declining because the summer-autumn harvest will be completed within a week, but that demand is also weakening. The same trader said the Philippines is increasing its rice imports while buying from suppliers other than Vietnam.
State media, citing the Vietnam Food Association, put Vietnam's rice exports for this year at 7.74 million tonnes.
Thailand's 5% broken rice rose to $488 per tonne from $483-485 per tonne a week earlier. “Prices are rising because the market expects production to remain low,” a Bangkok-based trader said.
- India, 5% broken parboiled: $371-377 per tonne (previous week $369-375)
- India, 5% broken white: $368-373 per tonne
- Vietnam, 5% broken: $440-445 per tonne, unchanged
- Thailand, 5% broken: $488 per tonne (previous week $483-485)
At those levels Indian rice remains the cheapest of the three origins, trading roughly $65-70 per tonne below Vietnamese material and about $115 below Thai. The discount keeps Indian cargoes the first option for price-sensitive importers even as Indian quotations rise.
Bangladesh halves aromatic rice export quota
Bangladesh has cut in half the aromatic rice export quota it had previously approved for traders, citing rising domestic prices and the risk of further increases. The government had cleared 45,270 tonnes of aromatic rice for export, but only 2,419 tonnes had been shipped by 30 August.
Under the revised rules, the minimum export price has been set at $1.60 per kilogram. Customs quality inspection and the repatriation of export earnings to Bangladesh have also been made mandatory.
Domestic price pressure in India
The export move comes while Indian households are paying more for kitchen staples. Onion and sugar prices rose in August and continue to press on consumers in retail markets, Dainik Jagran reported. With rice export quotations now at a one-year high, that pressure is extending from the domestic market to the international one.
