Indian Rice Export Prices Decline Amid Expanded Cultivation and Subdued Global Demand

New Delhi, Aug 16 (KNN) In the ever-fluctuating world of global rice trade, Indian export prices have seen a further decline this week, driven by subdued demand and optimistic projections for the upcoming harvest season. 

This development comes as cultivation areas in India have expanded, signaling potentially higher production in the near future.

The benchmark 5 per cent broken parboiled variety from India, the world's top rice exporter, is now quoted at USD 536-USD 540 per metric ton, down from USD 539-USD 545 last week. Industry insiders note that India's price advantage over competitors Thailand and Vietnam has narrowed, contributing to a slowdown in exports.

Adding a layer of complexity to the market dynamics, the Indian rupee has depreciated to a record low against major currencies. While this typically benefits exporters by increasing returns from overseas sales, it hasn't been enough to offset the current market pressures.

In contrast, Vietnam's rice market is showing signs of strength. Their 5 per cent broken rice is now offered at USD 570 per ton, up from USD 565 a week ago. Vietnamese traders report low domestic supplies coupled with increased deliveries to key markets in Indonesia and Africa. This surge in demand has led to impressive export figures, with July seeing a 46.3 per cent month-on-month increase in rice exports, totaling 751,093 metric tons.

Thailand, another major player in the global rice trade, has seen a slight uptick in prices. Their 5 per cent broken rice is now quoted at USD 567 per ton, up marginally from USD 565 last week. However, market activity remains relatively quiet, with demand primarily coming from regular customers.

Meanwhile, in Bangladesh, domestic rice prices remain elevated despite reported good inventory levels, highlighting the complex interplay of local and global factors in rice markets.

This market snapshot underscores the delicate balance of supply, demand, and economic factors that influence the global rice trade. As we move further into the harvest season, all eyes will be on India's production levels and their potential impact on world markets.

(KNN Bureau)