In a notable shift within the global rice market, Thai rice export prices have plummeted to their lowest level in over two years, largely due to subdued demand and an influx of supplies. Meanwhile, India’s rice prices have remained stable, reflecting a 21-month low. As rice prices fluctuate, consumers and traders alike are feeling the impact of these developments.

Thai Rice Prices Decline Amid Weak Demand

This week, the price of Thailand’s 5% broken rice fell to $405 per metric ton, the lowest since late October 2022. This figure aligns with the lower end of last week’s range, which was between $405 and $408.

• A Bangkok trader remarked on the current market conditions, stating, “Demand has been very quiet. It’s likely to remain low for the next two to three months.”
• The trader expressed concern over the oversupply situation and noted that customers are purchasing rice only as needed, largely influenced by lower prices from competitors like India and Vietnam.

India Maintains Steady Pricing

In contrast, India’s 5% broken parboiled rice has held steady at $403 to $410 per metric ton, unchanged from the previous week. This stability is noteworthy considering the competitive pressures from neighboring countries.

• A dealer from Kolkata pointed out that both Pakistan and Vietnam are aggressively marketing their white rice, which is impacting the pricing dynamics of parboiled rice in India.
• Earlier this month, India lifted a ban on exporting 100% broken rice, a significant move aimed at enhancing trade opportunities.

Vietnam’s Competitive Pricing

Vietnam is also making waves in the rice market, with its 5% broken rice offered at $394 per metric ton, a slight increase from last week’s $392.

• A trader in Ho Chi Minh City noted the ongoing sluggish demand, stating, "Activities remain tepid on soft demand."
• In response to these challenges, Vietnam’s trade minister has urged agencies to ramp up promotional efforts in markets like the Philippines and China, while also seeking new opportunities.

Bangladesh Faces Price Pressures

Despite attempts to bolster imports and strengthen reserves, domestic rice prices in Bangladesh continue to be elevated, creating added strain on consumers.

• The Bangladeshi government is procuring rice from Vietnam, Myanmar, and Pakistan through both government-to-government agreements and international tenders.
• However, private traders remain hesitant to engage in the market, fearing potential price drops locally.

As the rice market evolves, key players are adapting to changing conditions. The interplay of supply and demand continues to shape the landscape, with significant implications for consumers and exporters alike. For more insights into the global rice trade, stay updated with industry reports and market analyses.