Rupee plunge pulls Indian rice rates to 17-month low
Source: Live Mint
Thai traders foresee price drop post-New Year due to increased Indian supply
Supplies from autumn-winter harvest running low – Vietnam trader
Bangladesh imports rice from India through tenders
Dec 26 (Reuters) – Indian rice export prices extended declines to a 17-month low this week on depreciation in rupee to a record low, and demand remained muted in key hubs during the holiday period.
Top exporter India’s 5% broken parboiled variety
was quoted at $439-$445 per ton this week, down from the last week’s $440-$446. While, Indian 5% broken white rice was quoted $446-$453 per ton.
“This week, exporters adjusted prices considering the fall in the rupee. Demand was subdued because of Christmas vacations,” a New Delhi-based dealer with a global trade house said.
The Indian rupee hit a record low against the dollar this week, effectively increasing the margins of exporters.
Meanwhile, Bangladesh continues to import rice from India through tenders as part of its efforts to strengthen reserves. Floods in Bangladesh in August and October caused massive damage to crops, prompting the country to expand imports of the staple grain amid soaring food prices.
Elsewhere, prices slipped in Thailand and Vietnam as activity slowed during the holiday period.
Thailand’s 5% broken rice
was quoted at $502 per ton, down from last week’s $512.
The supply situation currently remains unchanged, a Bangkok-based trader said. However, Thai traders expect further price decreases after the New Year due to an increase in the global supply of rice from India.
Vietnam’s 5% broken rice
was offered at $405 per metric ton, down from $495-$508 a week ago, according to traders and the Vietnam Food Association.
A trader based in the Mekong Delta province of An Giang said domestic sales are also weak as supplies from the autumn-winter harvest are running low.
State media cited the association chairman Nguyen Ngoc Nam as saying Vietnam’s rice exports will face fiercer competition next year, with the expectation of more shipments from India and Indonesia’s efforts to cut down on imports.
(Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Wongcha-um Panu in Bangkok and Ruma Paul in Bangladesh; Editing by Tasim Zahid)
