Rice and shine: Parboiled prices soar as global markets heat up

Photo courtesy of Food52

Global rice markets are heating up as prices for parboiled rice surged this week, driven by robust demand in major export hubs India and Thailand. After three weeks of stability, Indian and Thai exporters are now cashing in on renewed interest, while Vietnamese traders grapple with stagnant sales.

India, the world’s largest rice exporter, saw its 5% broken parboiled rice hit US$445 to US$453 per tonne, its highest since October 24, up from US$440 to US$447. Indian 5% broken white rice also rose to US$450 to US$458 per tonne, compared to last week’s US$445 to US$452, said a Kolkata-based exporter.

Advertisements

“Demand is improving as buyers realise that prices are unlikely to fall further. They have begun placing orders.”

The recent scrapping of India’s export tax on parboiled rice and the removal of a US$490-per-tonne floor price for non-basmati white rice exports has given the country a competitive edge in the global market.

Related news

In Thailand, 5% broken rice prices climbed to US$510 per tonne, matching the level last seen on October 25. Traders attributed the increase to timely shipments and steady demand from regular customers. A Bangkok-based trader predicted further gains but noted that competition would intensify as India ramps up its exports.

Meanwhile, Vietnam’s 5% broken rice remained steady at US$520 per tonne, with traders offering discounted rates of US$500 to US$510, said a trader in Ho Chi Minh City.

“Sales are slow as both buyers and sellers are not happy with the current prices.”

Advertisements

Vietnam’s competitiveness could take another hit next year as a newly approved 5% VAT on fertilisers, effective July 2025, is expected to increase production costs and weaken its export appeal.

With shifting policies and heightened competition, the global rice trade is poised for an intense showdown in the coming months, reported Bangkok Post.

Rice and shine: Parboiled prices soar as global markets heat up | News by Thaiger
Photo courtesy of Asia Society

In related news, Thailand is on track to bolster its rice exports to 9 million tonnes this year, potentially generating 230 billion baht (US$6.4 billion), according to the Commerce Ministry.

Economy NewsThailand NewsWorld News

Puntid Tantivangphaisal

Originally from Hong Kong, Puntid moved to Bangkok in 2020 to pursue further studies in translation. She holds a Bachelor's degree in Comparative Literature from the University of Hong Kong. Puntid spent 8 years living in Manchester, UK. Before joining The Thaiger, Puntid has been a freelance translator for 2 years. In her free time, she enjoys swimming and listening to music, as well as writing short fiction and poetry.

Related Articles