Punjab Newsline | Chandigarh
India, the world's largest producer and exporter of rice, has witnessed a third consecutive weekly increase in rice export prices as higher government reserve prices and weak monsoon rainfall tighten market sentiment.
The price of India's 5% broken parboiled rice increased to $352–357 per tonne for the week ending Thursday, up from $348–352 per tonne a week earlier. Meanwhile, 5% broken white rice was quoted at $353–357 per tonne.
Traders attributed the price rise mainly to the government's decision to increase reserve prices under the Open Market Sale Scheme (OMSS) instead of lowering them as the market had expected. A Kolkata-based trader said the move pushed open market prices higher.
Weak monsoon rainfall, linked to El Niño, has also impacted rice cultivation. As of July 10, paddy had been sown across 11.5 million hectares, down from 12.6 million hectares during the same period last year, raising concerns over future supplies and supporting higher prices.
Adding to regional supply worries, floods in Bangladesh have damaged crops across 28,610 hectares in 12 districts, with paddy fields among the worst affected. Officials said the full extent of the damage would only become clear after floodwaters recede.
Thailand and Vietnam Market Update
In Thailand, prices for 5% broken rice slipped slightly to $445–450 per tonne from $450 per tonne last week. Traders said buying activity remains limited to essential deals, while the Philippines' temporary suspension of imports of Thailand's 5% broken rice has further weakened demand.
