This week saw a slight dip in rice export prices from Vietnam, driven by rising shipping costs, while prices in other major Asian export hubs remained steady.
Vietnam's 5% broken rice was offered at $570-$575 per metric ton on Thursday, down from last week's $575-$580. The increase in shipping costs, both domestically and internationally, is impacting rice shipments, according to a trader based in Ho Chi Minh City, who chose not to elaborate further.
Despite the rising costs, there is positive news for Vietnamese rice exporters. Another trader in Ho Chi Minh City highlighted the Philippines' recent move to lower its import tariff on rice, which is expected to boost shipments from Vietnam. The Philippines has long been Vietnam's largest rice export market.
However, Vietnam's rice exports have faced some setbacks. In May, exports fell by 14.6% from April, totaling 856,000 tons. Despite this monthly drop, the country's rice exports for the first five months of the year rose by 11.2% compared to the same period last year, reaching 4.02 million tons, according to government customs data.
Meanwhile, India's 5% broken parboiled rice was quoted at $539-$546 per ton this week, unchanged from the previous week. Continuous purchases from African buyers and the depreciation of the rupee have allowed Indian exporters to manage rising local prices caused by falling supplies.
Thailand's 5% broken rice also maintained its price, holding steady at $630 per ton. A trader based in Bangkok noted that demand continues from regular customers in Indonesia and the Philippines, with new demand and additional crops expected to emerge in July.
In another development, Bangladesh announced plans to import 400,000 tons of rice in 2024. The government is taking this step to control the prices of staple grains, according to food secretary Ismail Hossain.
As global rice markets adjust to fluctuating shipping costs and varied demand, exporters in Vietnam, India, and Thailand are closely monitoring the situation to navigate these challenges and opportunities.
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