Rice to the occasion: Thai prices drop as India returns to the market

Thai white rice prices have started to fall after India decided to resume non-basmati white rice exports. Despite this development, this year’s rice export volume remains unaffected, according to Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association.

Chookiat stated that on September 28, the Indian government lifted a ban on non-basmati white rice exports that had been in place for over a year prior.

“Buyers and sellers are evaluating the potential impact of increased Indian rice supplies and are uncertain about the actual sales price of Indian rice exporters.”

The decision was influenced by a larger crop yield expected in 2024, which would bolster state warehouse reserves for domestic supply. Additionally, India reduced the export duty on parboiled rice from 20% to 10%.

India’s 5% broken white rice was priced at around US$490 on Monday.

The lifting of the export ban has increased the global supply of white rice by up to five to six million tonnes.

Thailand’s 5% broken rice saw a price drop to US$520 per tonne from US$550 last week. Similarly, the price of milled white rice fell to 15,300 baht per tonne from a previous range of 16,500 to 17,000 baht.

Thailand is anticipated to meet its export target of more than 8.5 million tonnes of rice this year. However, projections indicate a decrease to only six million tonnes next year, as India is expected to produce up to 138 million tonnes.

Chookiat noted that Thailand’s rice export prices could decline due to the higher supply in the market, but the extent of the decrease would depend on several factors.

Rice exports in the first eight months of 2024 reached 6.57 million tonnes, marking an increase of 1.28 million tonnes or 24% compared to the same period last year.

Requests for permission to export rice with the Foreign Trade Department in September remained at normal levels, reported Bangkok Post.