Prices for rice exported from Thailand and Vietnam fell this week due to slow buying activity as traders anticipate policy changes from a major importer, the Philippines. Meanwhile, high freight costs have dampened demand for Indian rice in African markets.
Thailand’s 5% broken rice dropped to $585 per ton on Thursday, the lowest price since April 25, down from $595 last week. A Bangkok-based trader highlighted that exporters are cautious amid potential changes in Philippine import policy, including possible reductions in import tax.
In Vietnam, 5% broken rice prices were quoted at $575 per ton, slightly down from last week’s $575-$580 range. Trade has slowed as buyers await the anticipated tariff cuts by the Philippines, according to a trader in Ho Chi Minh City. Vietnam exported 650,000 metric tons of rice in June, marking a 5.7% increase compared to the same period last year, government data revealed.
India, the world’s top rice exporter, saw its 5% broken parboiled rice remain stable at $541-$548 per ton this week, unchanged from the previous week. However, African demand has weakened due to rising freight charges, with African buyers becoming increasingly price-sensitive, noted an exporter from Kakinada in southern Andhra Pradesh.
The Baltic Exchange’s main sea freight index reached a near-two-month high this week, exacerbating the cost pressures on African buyers.
Despite Bangladesh approving the import of nearly 2 million tons of rice, no rice has been imported as of April, according to officials from the food ministry. The Bangladeshi government is struggling to control rice prices, which have remained high despite good yields and substantial stock levels.