ASIA RICE-India rates near 1-1/2 year high as traders grapple with port logjams

Credit: REUTERS/Amit Dave

By Arundhati Sarkar

Sept 22 (Reuters) - India's prices for rice exports were near a 1-1/2 year high this week as traders struggled with logjams at ports due to recent curbs on overseas shipment, while buyers hunted for cheaper supply from other hubs.

Prices for the top exporter's 5% broken parboiled variety RI-INBKN5-P1 were unchanged from last week at $385-$392 per tonne, their highest since April 2021.

Some buyers were willing to pay higher prices, but most were waiting for prices to stabilize, said an exporter from Kakinada in the Indian state of Andhra Pradesh.

Rice loading has stopped at Indian ports, holding up shipments of nearly 1 million tonnes of grains, as buyers are refusing to pay the government's new 20% export levy on top of the agreed contract price.

The restrictions also forced buyers to switch to rival suppliers.

Vietnam's 5% broken rice rates RI-VNBKN5-P1 were also unchanged at $400-$410 per tonne.

Traders said domestic rice prices had risen recently as exporters were boosting purchases from farmers, anticipating higher export rates.

"Domestic supplies are running low as the summer-autumn harvest has ended and we've to wait for at least two more months before another harvest begins," a Ho Chi Minh City-based trader said.

Meanwhile, Vietnam's agriculture minister Le Minh Hoan said the country was not in a deal with Thailand to jointly raise rice prices in theglobal market after a Thai official recently hinted at such an agreement.

Thailand's 5% broken rice prices RI-THBKN5-P1 widened to $420-$435 per tonne from $425-$435 last week, amid a weaker baht. THB=TH

"There may be some demand from Japan based on annual purchases when it is used to ferment liquor to make sake," said a Bangkok-based rice trader.

Another trader said there was demand from South Asia, citing natural disasters in Bangladesh and Pakistan.

Bangladesh has allowed private traders to import another 80,000 tonnes of rice in an effort to cool domestic prices of the staple.

(Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok and Ruma Paul in Dhaka; Editing by Anil D'Silva)

((;; +1 646 223 8780 Ext: 2776))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.