Exporters have noted a drop in global rice prices on Monday, September 30th, as India, the world’s largest rice exporter, has approved the resumption of rice exports, increasing global supply and helping provide more affordable options for buyers in poverty-stricken Asia and Africa.
According to reports from Reuters, last Saturday, India decided to allow the export of all varieties of rice except for Indian Basmati rice. The Indian government had also reduced the export duty on parboiled rice to 10% the previous day, citing the upcoming new rice season and an increase in official warehouse stocks.
Himanshu Agarwal, the managing director of leading rice exporter “Satyam Balajee” in India, stated that suppliers from Thailand, Vietnam, and Pakistan are responding to India’s move by lowering export prices. Everyone is striving to maintain competitiveness to retain their market share.
India’s restriction on white rice exports and the imposition of a 20% duty on parboiled rice last year led to a surge in global rice prices to the highest levels in 15 years.
The export restrictions imposed by India last year presented opportunities for rice suppliers from countries like Vietnam, Thailand, Pakistan, and Myanmar, enabling these competitors to increase their market share and raise prices in the global market.
On Monday, the price for 5% broken parboiled rice from India was quoted at $500 to $510 per ton, lower than the previous week’s $530 to $536. The price for 5% broken white rice from India was around $490.
Dealers reported that exporters from Vietnam, Pakistan, Thailand, and Myanmar also lowered rice prices by at least $10 per ton on Monday.
The Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia are major importers of rice from Asia.
Nitin Gupta, Senior Vice President of Olam Agri, one of India’s largest agricultural trading companies, mentioned that both buyers and sellers are evaluating the potential impact of increased rice supply from India, and prices are expected to stabilize this week.
In 2022, India accounted for over 40% of the world’s rice exports, reaching a record 22.2 million tons out of the global trade volume of 55.4 million tons that year.
On Monday, Thai rice was priced at $540 to $550 per ton, lower than the previous week’s $550 to $560 per ton.
Chukiat Opaswong, Honorary Chairman of the Thai Rice Exporters Association, stated that with the increase in market supply, the export price of Thai rice may decrease, but the extent of the decline will depend on various factors, including the appreciation of the Thai currency.
Even in Vietnam, rice prices have begun to adjust, but traders are cautious, warning that the full impact of increased Indian rice supply is yet to be observed.
Truong Tan Tai, CEO of rice exporter “Vinarice Co.,” advised Vietnamese exporters to remain calm and avoid lowering prices in pursuit of contracts.