Rice and shine: Parboiled prices soar as global markets heat up

[snoop1130]

Photo courtesy of Food52

 

By Puntid Tantivangphaisal

 

Global rice markets are heating up as prices for parboiled rice surged this week, driven by robust demand in major export hubs India and Thailand. After three weeks of stability, Indian and Thai exporters are now cashing in on renewed interest, while Vietnamese traders grapple with stagnant sales.

 

India, the world’s largest rice exporter, saw its 5% broken parboiled rice hit US$445 to US$453 per tonne, its highest since October 24, up from US$440 to US$447. Indian 5% broken white rice also rose to US$450 to US$458 per tonne, compared to last week’s US$445 to US$452, said a Kolkata-based exporter.

 

“Demand is improving as buyers realise that prices are unlikely to fall further. They have begun placing orders.”

 

The recent scrapping of India’s export tax on parboiled rice and the removal of a US$490-per-tonne floor price for non-basmati white rice exports has given the country a competitive edge in the global market.

 

In Thailand, 5% broken rice prices climbed to US$510 per tonne, matching the level last seen on October 25. Traders attributed the increase to timely shipments and steady demand from regular customers. A Bangkok-based trader predicted further gains but noted that competition would intensify as India ramps up its exports.

 

 

Meanwhile, Vietnam’s 5% broken rice remained steady at US$520 per tonne, with traders offering discounted rates of US$500 to US$510, said a trader in Ho Chi Minh City.

 

“Sales are slow as both buyers and sellers are not happy with the current prices.”

 

Vietnam’s competitiveness could take another hit next year as a newly approved 5% VAT on fertilisers, effective July 2025, is expected to increase production costs and weaken its export appeal.

 

With shifting policies and heightened competition, the global rice trade is poised for an intense showdown in the coming months, reported Bangkok Post.

 

Source: The Thaiger

-- 2024-11-29