After India, the world's top rice exporter, approved the resumption of exports, the price of rice fell on Monday as a result of increased global supply, boosting the ability of low-income Asian and African consumers to obtain more reasonably priced supplies, according to exporters.
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Impact of Global Rice Prices
Non-basmati white rice exports were permitted by India on Saturday. That occurred the day after New Delhi, encouraged by an upcoming new crop and increased stockpiles in state warehouses, reduced export duties on parboiled rice to 10%.
According to Himanshu Agarwal, executive director of top rice exporter Satyam Balajee, suppliers from Thailand, Vietnam, and Pakistan are responding to India's move by lowering their export prices. Everyone's trying to stay competitive to hold their spot in the market.
After India announced last year that it would no longer allow the export of white rice and that exports of parboiled rice would be subject to a 20% duty, the price of rice surged to its highest level in more than 15 years.
Due to India's export restrictions from the previous year, rival suppliers like Vietnam, Thailand, Pakistan, and Myanmar were able to gain market share and raise their prices on the international market.
Global Rice Pricing
India's 5% broken parboiled variety was quoted between $500 and $510 per metric ton on Monday, down from $530 and $536 the previous week. The price of the Indian 5% broken white rice was about $490.
According to dealers, exporters in Vietnam, Pakistan, Thailand, and Myanmar also reduced their prices on Monday by at least $10 per ton.
Asian rice is primarily imported by the Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia.
Prices will stabilize this week as a result of buyers and sellers assessing the possible effects of increased Indian rice supplies, according to Nitin Gupta, senior vice president of Olam Agri India.
In 2022, India exported a record 22.2 million metric tons of rice, or over 40% of the world's total 55.4 million metric tons of rice traded globally.
Monday's quoted prices for Thai rice were $540-$550, which is less than the $550-$560 per ton of last week.
Increased supply in the market may result in lower prices for Thailand's rice exports, but the degree of the drop will depend on a number of variables, including the strengthening Thai baht, according to Chukiat Opaswong, honorary president of the Thai Rice Exporters Association.
Although traders warn that the full effect of Indian supplies has not yet been seen, rice prices have begun to correct, even in Vietnam.
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REFERENCE- The Print
