SPX3,911.74+116.01 3.06%
DIA315.02+8.28 2.70%
IXIC11,607.62+375.43 3.34%

ASIA RICE-India rates rise as fears of export curb accelerate demand

reuters.com · 06/09/2022 09:33
ASIA RICE-India rates rise as fears of export curb accelerate demand

Bangladesh to allow private traders to import rice- minister

Supply of Thai rice ample but no major deals so far- traders

Philippines' tariff cut a positive signal- Vietnamese trader

Vietnam Jan-May rice exports up 6.5% y/y

By Swati Verma

- Export prices for Indian rice rose further this week, supported by strong demand and concerns that the world's top exporter of the grain could restrict shipments.

India's 5% broken parboiled rice RI-INBKN5-P1 was sold at prices of $357 to $362 per tonne this week, compared with $355 to $360 in the previous week.

"There's huge demand for 100% broken rice, as well as for the 5% broken rice. Traders are speculating India might put restrictions on the exports," said an exporter based at Kakinada in the southern state of Andhra Pradesh.

India's surprise ban on wheat exports has prompted rice traders to increase purchases and place unusual orders for longer-dated deliveries. nL1N2XT06T

However, trade and government sources have said the country does not plan to curb exports of the grain as there were sufficient stocks and local rates were lower than state-set support prices. nL2N2XJ04E

Neighboring Bangladesh will, meanwhile, allow private traders to import rice as domestic prices have jumped more than 5% in a week despite good crops and reserves. The government is also cracking down on stockpiling.

Traditionally the world's third-biggest rice producer, Bangladesh often imports the grain to ease shortages after floods and droughts.

Thailand's benchmark 5% broken rice RI-THBKN5-P1 was quoted at $450 to $460 per tonne versus $455 to $460 last week, with the small change attributed to currency fluctuations. THB=TH

"There's some demand for exports but no major deals so far," a Bangkok-based trader said.

Supply remains ample with new crops expected around July-August, another trader said.

Vietnam's 5% broken rice RI-VNBKN5-P1 prices remained steady at $420-$425 per tonne.

"Domestic supplies are building with output from the summer-autumn harvest," a trader in Ho Chi Minh City said.

"But demand is also picking up, especially from Asian and African buyers."

Vietnamese exports in the first five months this year rose 6.5% from last year. nL4N2XU11N

"The Philippines' move earlier this week to extend a cut in import tax on rice is also a positive signal for exporters," another trader said.

(Reporting by Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok, Rajendra Jadhav in Mumbai, Ruma Paul in Dhaka; editing by Arpan Varghese and Aditya Soni)

((Swati.Verma@thomsonreuters.com; within U.S. +1 646 223 8780 , outside U.S. +9180 6182 2831/3590; Reuters Messaging: swati.verma.thomsonreuters.com@reuters.net))