India’s rice export prices surged this week due to increased duties on rice shipments, while demand in Thailand remained subdued.
The 5 per cent broken parboiled variety from India was quoted at USD 550-558 per ton, rising from the previous week’s range of USD 543-550. Earlier in the month, prices had reached a peak of USD 560.
“We’ve had to adjust prices because the government is now considering the total transaction value instead of the Free on Board (FOB) value to calculate the 20 per cent export duty. This has led to an increase in our export prices,” explained a dealer based in New Delhi with a global trade house.
In August 2023, New Delhi imposed a 20 per cent export duty on parboiled rice exports to regulate domestic rice prices.
Indian exporters have been served notices by the customs department demanding payment of duty differentials on rice exported over the past 18 months, as reported by four exporters to Reuters. This uncommon tax demand could potentially disrupt rice shipments from India.
Thailand’s 5 per cent broken rice prices were quoted at USD 585-590 per ton, down from the previous week’s range of USD 598.
Prices softened due to a depreciating baht and subdued demand, according to the new agency Reuters citing a trader based in Bangkok, although Indonesian buyers provided some support to prices.
Another trader mentioned that Vietnamese rice was more competitively priced and local supply was nearing its seasonal end, although some paddy remained.
Vietnam’s 5 per cent broken rice was offered at USD 590- 595 per metric ton, remaining unchanged from the previous week.
The Philippines stands as Vietnam’s largest rice export market. Meanwhile, rice prices in Bangladesh remained elevated despite favorable yields and reserves.
According to the report, officials hinted that Bangladesh might permit private traders to import up to 200,000 tonnes of rice to alleviate domestic price pressures on this essential grain.
