India's rice exports gain edge as Vietnam, Thailand face subdued markets: Report
Rice prices in India have experienced a modest increase this week as global demand for the staple begins to recover. This comes as markets in Vietnam and Thailand remain subdued due to slow buying and abundant supply.The price for 5% broken parboiled rice, a common export product from India, has risen to $380–$386 per tonne, compared to last week's $378–$384 per tonne. Similarly, 5% broken white rice prices have also seen a slight uptick, now trading between $373 and $377 per tonne.advertisementHimanshu Agrawal, executive director at Satyam Balajee, one of India's leading rice exporters, attributes this price rise to currency fluctuations. "The weaker rupee is giving exporters a small boost, and we're seeing demand pick up again," he told news agency Reuters.
This currency shift has provided a competitive edge for Indian exporters as they navigate the current global market conditions.India's rice supply remains strong, with government reserves reported at 59.5 million metric tonnes as of June 1. This figure is over four times the official target for July, highlighting the country's substantial rice stockpile. The large reserves may help stabilise local prices while meeting growing international demand.On the other hand, rice prices in Vietnam have dipped slightly to $387 per tonne from $388 last week. A trader in Ho Chi Minh City told Reuters that despite slow sales, the government is actively seeking to bolster exports to China. Last week's visit by a delegation of Vietnamese rice exporters to China's Guangdong province reflects these efforts.advertisementThailand, on the other hand, experienced a minor reduction in rice prices, falling to $397 per tonne from $398. The demand in Thailand remains weak, compounded by a stronger local currency that has rendered exports more costly. "There's a lot of rice available, and we're expecting a good harvest this year," commented a trader in Bangkok. However, concerns persist regarding the impact on farmers, as "prices are not holding up."In Bangladesh, rice prices remain elevated despite governmental measures aimed at market cooling. Efforts such as increasing public stock purchases, reducing import taxes, and imposing stricter market controls have not significantly alleviated the high retail prices. These costs continue to strain lower-income families, making staple varieties prohibitively expensive for many.The scenario across these countries underscores the complex interplay of local and international factors influencing rice markets. While India benefits from a weaker currency and robust reserves, Vietnam and Thailand grapple with subdued demand and challenging export conditions. Meanwhile, Bangladesh struggles with domestic price pressures, reflecting varied challenges in global rice production and trade.Overall, the evolving dynamics in the global rice market highlight the intricacies of agricultural trade and the significant impact of economic and policy factors on staple food prices worldwide. As countries navigate these challenges, the outcomes will be crucial for farmers, traders, and consumers alike.With inputs from ReutersMust Watch
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