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ASIA RICE-Flood-hit Bangladesh races to restock as strong dollar hits imports

ASIA RICE-Flood-hit Bangladesh races to restock as strong dollar hits imports

Reuters · 07/28/2022 07:32
ASIA RICE-Flood-hit Bangladesh races to restock as strong dollar hits imports

Vietnamese prices likely to recover in short term - trader

Yields in India likely to be lower than - exporter

Thai rates at $400/t vs $420 last week

Vietnamese prices at $395-$413/t vs $415-$420 last week

By Eileen Soreng

- A strong dollar slowed imports to flood-hit Bangladesh this week as it grappled with soaring domestic rates, while prices of rice exported from Thailand and Vietnam fell as supplies increased.

"Though traders have started to import, the volume is significant. Sliding local currency against the dollar is discouraging them," a Dhaka-based trader said. USD/

Bangladesh started importing rice from India after the government had allowed private traders to import 1 million tonnes of rice and slashed import duties after floods destroyed crops.

The Bangladesh government also sought a letter of credit from the central bank, with rice import data, to tide over the supply situation, officials said.

Rates for India's 5% broken parboiled variety RI-INBKN5-P1 were unchanged at $362-$368 per tonne, as weak demand offset supply concerns.

"Paddy sowing is still lagging in key eastern states. Even if it picks up in coming weeks, yields are likely to be lower than ," said an exporter from the state of Andhra Pradesh in India.

Rice farmers have planted 17 million hectares so far this season, India's farm ministry data showed, down 19% from the same period last year, amid scanty rainfall.

Thailand's 5% broken rice prices RI-THBKN5-P1 fell to $400 per tonne from last week's $420.

"The decline is due to a drop in FOB (free-on-board) prices. Demand should come in, with exports exceeding 6 million tonnes amid the weaker baht," a Bangkok-based trader said, adding good rains have increased supply.

Vietnam's 5% broken rice prices RI-VNBKN5-P1 fell to $395-$413 from $415-$420 last week.

"Demand is weak, while domestic supplies are strong thanks to the summer-autumn harvest," a Ho Chi Minh City-based trader said.

"Prices won't likely recover in the short term since Thai and Indian rates remain low," the trader said.

Data showed 269,775 tonnes to be loaded at Ho Chi Minh City port in July, mostly bound for the Philippines and Africa.


(Reporting by Eileen Soreng in Bengaluru, Ruma Paul in Dhaka, Rajendra Jadhav in Mumbai, Chayut Setboonsarng in Bangkok and Khanh Vu in Hanoi; Editing by Arpan Varghese and Shounak Dasgupta)

((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.))