Indian rice export prices rose for a third straight week, driven by a higher reserve price for the commodity sold under the government's Open Market Sale Scheme (OMSS) and concerns that weak monsoon rains could delay planting, according to Reuters.
Price Movements
India's 5% broken parboiled rice was quoted at $352–$357 per ton in the week ending Thursday, up from $348–$352 the previous week. 5% broken white rice was priced at $353–$357. "The market had expected lower OMSS reserve prices, but the government's decision to raise them lifted open market prices," a Kolkata-based trader said.
| Variety | Previous Week ($/ton) | Current Week ($/ton) | Change |
|---|---|---|---|
| Indian 5% broken parboiled | $348–$352 | $352–$357 | +$4–$5 |
| Indian 5% broken white | N/A | $353–$357 | N/A |
| Thai 5% broken | $450 | $445–$450 | Down slightly |
| Vietnam 5% broken | $445–$450 | $445–$450 | Unchanged |
Supply and Planting
Farmers planted summer-sown rice on 11.5 million hectares as of July 10, down from 12.6 million hectares a year earlier, reflecting the impact of delayed monsoon rains. The government's OMSS reserve price hike has further tightened domestic supplies available for export.
Regional Developments
In Bangladesh, floods have damaged crops on at least 28,610 hectares across 12 districts, with paddy and rice seedbeds among the hardest hit. "The current estimates are preliminary. The full extent of crop losses will become clear as the floodwaters recede," a Department of Agricultural Extension official said.
Thailand's 5% broken rice was quoted at $445–$450, down slightly from $450 last week. "Buying has been limited to essential purchases, with the Philippines' temporary suspension of imports of Thai 5% broken rice further weighing on demand," a Bangkok-based trader said. Supply is gradually increasing as the dry-season rice harvest enters the market, although traders remain cautious over the potential impact of El Niño on production later this year.
In Vietnam, 5% broken rice was offered at $445–$450 per metric ton on Thursday, unchanged from last week. "Trading activity is slow as buyers are awaiting rising supplies from an ongoing harvest," a Ho Chi Minh City-based trader said. Farmers noted that the summer-to-autumn harvest will peak from the end of this month through August.
The Philippines' import suspension and Bangladesh's flood damage are key demand-side factors that could shift regional trade flows. Indian exporters may gain a competitive edge if Vietnamese and Thai supplies remain steady or decline. However, the pace of Indian planting and monsoon progress will be critical for the next few weeks.
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