Thai rice export prices hit 14-month low amid weak demand

Thai rice export prices have hit a 14-month low due to subdued demand and competition from more affordable suppliers, while Indian rice prices increased slightly owing to a stronger rupee, despite weak demand from Asian and African markets.

Thailand‘s benchmark 5% broken rice is now quoted at US$560 per tonne, marking its lowest price since July 20, 2023, and a decrease from US$565 last week.

According to a trader based in Bangkok, although there was some demand from Indonesia, many buyers opted for cheaper rice from other countries. The trader also noted that the depreciation of the Thai baht could help in further reducing prices.

Commerce Minister Pichai Naripthaphan highlighted that the baht’s appreciation would impact exports over the next three months, particularly affecting agricultural products.

Another trader mentioned that the market is closely observing potential changes in Indian rice policy in the coming months, with current supply conditions being in the harvesting stage.

India, the world’s leading rice exporter, saw its 5% broken parboiled rice quoted at US$536 per tonne this week, a slight increase from US$534 the previous week, which was the lowest since mid-January.

“The strong rupee is driving up prices, but demand remains sluggish. Buyers are holding off on purchases, hoping India will cut export duties,” explained a trader from Mumbai.

Vietnamese 5% broken rice was offered at US$565 per tonne yesterday, down from approximately US$580 the previous week, according to the Vietnam Food Association.

A trader in Ho Chi Minh City commented, “Prices fell due to competition from other suppliers such as Thailand, Cambodia, and Myanmar.”

Vietnamese traders reported that an exporter secured contracts to export 59,000 tonnes of rice, part of an Indonesian government tender to purchase 450,000 tonnes, after agreeing to a lower price, reported Bangkok Post.

Vietnam’s rice exports for the year up to mid-September rose by 6.2% compared to the same period last year, reaching 6.5 million tonnes, as per customs data.