Prices of rice exported from top hub India extended their rally to a fresh five-year peak this week on supply concerns, while strong demand kept Thailand and Vietnam rates near two-year highs.
India’s 5% broken parboiled variety was quoted at $412 to $420 per tonne, up from $409-$416 last week.
Demand has been moderating at higher levels, but prices were still rising due to limited supplies and the hike in government procurement prices, said a Mumbai-based exporter.
Global prices, now at their highest in 11 years, were set to rally further after top exporter India moved to boost farmer payments, just as El Nino threatens yields in key producers.
Vietnam’s 5% broken rice was offered at $500-$510 per tonnes on Thursday, unchanged from last week.
“Demand is strong and exporters are rushing to purchase paddy from farmers for their export contracts,” a trader based in Ho Chi Minh City said, adding global demand could stay elevated until the end of the year.
A senior official of the Vietnam Food Association said the country’s rice exports this year will exceed 6.5 million tonnes, but remain below last year’s 7.1 million tonnes.
Preliminary shipping data showed 95,200 tonnes were set to be loaded at Ho Chi Minh City port in the July 1-12 period, with most of the rice heading to Africa, Indonesia and the Philippines.
Thailand’s 5% broken rice prices were unchanged at $515 per tonne.
The prices stayed high due to strong demand from Indonesia, the Philippines, Malaysia and some African nations as drought concerns prompted them to stock up, a Bangkok-based trader said.
Bangladesh’s rice output from the summer crop will exceed the target of 21.5 million tonnes this year, agriculture ministry officials said.
Dhaka has been trying to rein in domestic prices of the staple that have continued to soar despite good yield and reserves.
This article has been republished from The Economic Times