Indian Rice Export Prices Stay High On Strong Demand, Limited Supply

1. Indian Rice Export Prices Stay High On Strong Demand, Limited Supply Rice being the staple food crop is grown widely around the world. India is the second largest producer of Rice and the largest rice exporter in the world. Favorable climatic conditions help the Asian nation produce and export record volumes of rice every year. However, last year has been a different one. Erratic monsoon in major rice producing states of India have stoked to problems already caused by the Russian invasion of Ukraine. Owing to these, the prices of essential grains including rice are on the rise as the demand remains strong while the supplies are short. Since April 2021, the export prices of rice have increased to its highest level. In addition to this, the supply of rice was tight and demand was high. The export price of Thai rice is also increasing, which is keeping the buyers at bay.

2. Export Prices Of Indian Rice The top Rice Exporter of India has exported 5% broken parboiled rice at $393 to $398 per tonne this week which is quite higher than the last week’s export prices i.e., $387 to $395. A New Delhi based crop dealer owning a Global trade house stated in a conference that “this year, the Indian government has purchased unmilled rice directly from farmers in a huge quantity. Thus, the private traders are left with a minimum amount of rice for export in the global market. Despite the curb on overseas export of rice by the Indian government, the export rate jumped to a record high. The buyers are purchasing Indian rice even at higher prices due to competitive prices of other rice exporting countries. This week, the price of 5% of Thai rice was slightly reduced from $500 per tonne to $495 per tonne. Traders associated the slight drop in price with the decrease in demand and lack of inventory. Besides that, the increasing rate of local currency also leads to high export prices. According to a Bangkok based trader, the market could experience a change in prices once the market receives new supplies of crops at the beginning of March. From the past two weeks, the export price of 5% broken rice in Vietnam is unchanged i.e. $445 per tonne to $450 per tonne. According to a merchant from Ho Chi Minh City, following the vacation, traders are starting to buy rice from farmers again in order to get ready for fresh contracts. As per the government figures issued on Sunday, Vietnam exported 4 lakh tonnes of rice in January, a 20.9% decrease from the same month last year. The United States Department of Agriculture (USDA) reported that Bangladesh’s rice output for the marketing year that ended in April was revised up to 35.8 million tonnes. The Bottom Line The demand for Indian rice always remains high in the global market and the Asian nation every year harvests bumper volumes of rice, owing to which it is able to export the commodity even after meeting its huge consumption needs. However, this year, the supply is not adequate due to various socio- economic and environmental factors and this has led to increase in export prices. If you are an importer and are wishing to buy rice in bulk or an exporter willing to supply bulk quantities of different agro-commodities including rice, then Tradologie.com is the right platform for you. Tradologie has 600,000+ verified global buyers and 70,000+ verified suppliers of food and agro- commodities from 100+ countries and through the platform, you can connect and conduct agro-trade with the relevant ones with ease.

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