Strong rupee lifts Indian prices despite tepid demand

Indian rice prices climbed to a near one-month high this week, bolstered by an appreciation in the Indian rupee despite tepid demand, while Thai rice prices remained steady due to low demand and abundant supply.

India’s rice prices for 5% broken parboiled variety was quoted at $390-$397 per ton, up from the last week’s $389-$396. Indian 5% broken white rice was priced at $383 to $390 per ton this week.

The Indian rupee on Wednesday rose to its highest level this year, consequently reducing the margin for exporters.

In Thailand, the price of the 5% broken rice remained around $410 per ton, matching last week’s levels. Traders attributed this to weak demand and ample supply so far this year.

“This week there are deals with regular customers such as those from Africa, Iraq and the Philippines but they bought very little,” a Bangkok-based trader said.

Meanwhile, Bangladesh lifted a ban on the export of aromatic rice, allowing private traders to export up to 25,000 tonnes, according to officials. The ban, imposed in June 2022, aimed to stabilize the domestic market and curb price volatility.

Vietnam’s markets were closed for national holidays. (Reporting by Anmol Choubey in Bengaluru, Rajendra Jadhav in Mumbai, Panu Wongcha-um in Bangkok and Ruma Paul in Dhaka; Editing by Sonia Cheema).