Lacklustre demand, weak rupee drag down India rice rates
INDIA’S rice export prices fell this week due to sluggish demand and depreciation in the rupee to a record low, while Vietnam rates edged higher.
Top exporter India’s 5 per cent broken parboiled variety was quoted at US$539-to-US$545 per tonne, down from last week’s US$543-to-US$551.
“Asian and African buyers are not active in the market; they are postponing purchases anticipating a drop in prices,” said a New Delhi-based dealer with a global trade house.
Indian rupee this week depreciated to a record low, increasing exporters’ return from overseas sales.
Vietnam’s 5 per cent broken rice was offered at US$565 per tonne, up from US$560 a week ago, traders said.
There are growing demands from Philippine clients, while exports to the Philippines and Indonesia have increased in recent days, said a Ho Chi Minh City-based trader.
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“Supplies are stable, but the quality of rice is not good due to continuous rainfall in the Mekong Delta.”
Thailand’s 5 per cent broken rice was quoted at US$565 per tonne, down from the US$570-to-US$575 range last week.
Prices fell on a strengthening baht and as local exporters could not capture demand from Indonesia, said a Bangkok-based trader, adding that exporters would try to push prices up during the next auction season, which could depress demand.
There were no concerns about supply and they have been coming out gradually due to good rainfall, the trader said.
Meanwhile, the Bangladeshi government has been struggling to control prices of the staple grain for the nation as domestic prices have stayed elevated despite good stocks.
Student protests forced Bangladesh Prime Minister Sheikh Hasina to quit and flee on Monday. The country is set to get a new, interim government headed by Nobel Peace Prize-winning economist Muhammad Yunus. REUTERS
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