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ASIA RICE: Indian Varieties Gain Favor Amidst Dwindling Vietnam Supplies


Rice export from India

This week witnessed a persistent rise in the prices of parboiled rice from India, one of the leading hubs, as buyers gravitated towards the more economical Indian variety, while concerns loomed over depleting supplies from Vietnam.


The 5% broken parboiled rice from India, RI-INBKN5-P1, saw its quotes surge to $500 to $507 per ton this week, marking an increase from the previous week's $493 to $503. Notably, this hike occurred despite the continuous rise in supplies from the new season's crop.


Rising prices in Thailand and Vietnam prompted buyers to turn back to India, even despite the export duty. The comparative cost-effectiveness of Indian supplies stood out amidst the escalating rates in other origins.


India, as a response, extended a 20% duty on parboiled rice exports until March 2024, further influencing trade dynamics in the region.


Meanwhile, neighboring Bangladesh grappled with sustained high domestic rice prices, despite favorable yields and reserves. The government stepped in, selling rice at subsidized rates to support those in need.


In Vietnam, the prices for 5% broken rice, RI-VNBKN5-P1, held steady at $650-$655 per metric ton, with traders citing sluggish sales due to dwindling supplies.

"Supplies are running low," expressed a trader from Ho Chi Minh City, highlighting exporters' hesitation to commit to new contracts due to uncertainties about procuring sufficient paddy from farmers.


Preliminary shipping data unveiled that 299,817 tons of rice were slated for loading at Ho Chi Minh City port from November 1 to 23. Most of this rice is bound for destinations in Africa, Cuba, Indonesia, the Philippines, and Malaysia.


Thailand, on the other hand, witnessed a rise in the prices of its 5% broken rice, RI-THBKN5-P1, soaring to $600 per ton from the previous range of $570 to $575. This upward trajectory persisted owing to heightened demand, particularly from countries like Indonesia, the Philippines, and Malaysia, with a consistent and smooth influx of supplies reported by traders.

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