ASIA RICE Strong demand from Asia, Africa lift Indian prices

A farmer checks paddy in his rice field on the outskirts of Gauhati, India, April 30, 2022. (ANUPAM NATH / AP)

Export prices of rice from India rose this week on increasing demand from Asia and Africa, while dwindling supplies of the staple lifted Vietnamese rates.

Top exporter India's 5 percent broken parboiled variety was quoted at $363-$367 per tonne, up from last week's $361-$365, with prices also being supported by an appreciation in the rupee

Top exporter India's 5 percent broken parboiled variety was quoted at $363-$367 per tonne, up from last week's $361-$365, with prices also being supported by an appreciation in the rupee.

"Demand for all types of rice is robust from Asia and Africa," said Nitin Gupta, vice-president for Olam India's rice business.

Generally, a stronger rupee reduces traders' margin from overseas sales.

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In neighboring Bangladesh, domestic prices remained high, which officials blamed on hoarding and warned of strict action against those amassing the staple for windfall profits.

Meanwhile, Vietnam's 5 percent broken rice was offered at $420 per tonne on Thursday, up from $415 a week ago.

"Prices are edging up on tight supplies as the winter-spring harvest has come to an end," a trader based in Ho Chi Minh City said, adding that supplies would increase after the summer-autumn harvest in late-May.

Vietnam's rice exports in the first four months of the year likely rose 4.4 percent from a year earlier to 2.05 million tonnes, while revenue from rice exports in the period fell 6 percent from a year earlier.

Thailand's 5 percent broken rice prices were quoted at $435-$445 per tonne on Thursday, an increase from $432-$435 last week.

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"There has been more demand from Iraq, with many freighters sent to buy rice and this drove up prices," a Bangkok-based trader said.

Ships made available by Middle Eastern clients have eased the burden of high freight costs that were a concern for exporters earlier, according to traders.

The amount of rice in the market will begin to decrease as Thailand move towards the rainy season, another trader said.