Indian rice export prices rise for third week as planting lags
Indian rice export prices increased for a third consecutive week after the government raised the OMSS reserve price and weak monsoon rainfall slowed paddy planting. Thai and Vietnamese 5% broken rice remained substantially more expensive, although demand in both markets was subdued.
Indian quotations extend their rise
Indian rice export prices increased for a third consecutive week as a higher reserve price under the government's Open Market Sale Scheme, or OMSS, lifted domestic market values. Weak monsoon rainfall and a slower pace of paddy planting added to concerns about future supply, while international demand for Indian rice remained firm, Jagran reported.
India's 5% broken parboiled rice was quoted at $352-$357 per tonne in the week to Thursday, up from $348-$352 per tonne a week earlier. Indian white rice with up to 5% broken grains was offered at $353-$357 per tonne. The two grades therefore traded within a narrow range, with Indian supply still priced well below comparable offers from Thailand and Vietnam.
A Kolkata-based trader said the market had expected the OMSS reserve price for rice to be reduced. The government's decision to raise it instead pushed prices higher in the open market. The report did not specify the new reserve price or the size of the increase.
Weak rainfall slows paddy planting
Monsoon rainfall had fallen substantially under the influence of El Niño, according to Jagran. By July 10, farmers had planted the summer paddy crop across 11.5 million hectares, compared with 12.6 million hectares at the same point a year earlier. The gap of 1.1 million hectares reinforced upward pressure on rice values, although the source provided no production forecast.
The planting slowdown matters beyond India because the country is described by Jagran as the world's largest rice producer and exporter. A smaller crop or further domestic price increases could affect the competitiveness and availability of Indian shipments. For importers, however, India's prevailing export quotations still offered a significant discount to supplies from Thailand and Vietnam.
Regional supply risks were also visible in Bangladesh. Flooding damaged crops across at least 28,610 hectares in 12 districts, with paddy and rice seedbeds among the worst-affected areas. An official from the Department of Agricultural Extension said the estimates were preliminary and that the full scale of losses could be assessed only after floodwaters receded.
Thai demand weakens while Vietnam holds steady
Thailand's 5% broken rice declined marginally to $445-$450 per tonne from $450 per tonne in the previous week. A Bangkok trader said purchases were limited to essential transactions. A temporary Philippine suspension of imports of Thai 5% broken rice further weakened demand, while supplies in Thai markets were gradually increasing.
Thai traders nevertheless remained cautious about the possible effect of El Niño on production later in the year. That concern creates a split market: near-term availability is improving and buying is restrained, but uncertainty over the next crop continues to limit confidence in a sustained decline in prices.
Vietnamese 5% broken rice was unchanged at $445-$450 per metric tonne on Thursday. A trader in Ho Chi Minh City said business remained slow because buyers were waiting for the harvest to bring new-crop supplies to market. At the quoted ranges, Indian 5% broken rice retained a discount of at least $88 per tonne to the lowest Thai and Vietnamese offers, supporting its appeal to price-sensitive buyers despite the three-week increase.
