Global rice prices experienced a significant decline on Monday following India’s decision to resume exports, a move that is expected to increase global supply and provide relief to poor Asian and African buyers seeking more affordable rice options. India, the world’s largest exporter of rice, announced on Saturday that it would allow exports of non-basmati white rice, while simultaneously cutting the export duty on parboiled rice to 10%. This announcement comes as India prepares for a new crop and sees an increase in inventories within state warehouses, providing the necessary conditions to lift restrictions.
According to Himanshu Agarwal, executive director of leading rice exporter Satyam Balajee, suppliers from other rice-exporting countries, including Thailand, Vietnam, and Pakistan, have begun responding to India’s policy change by lowering their export prices in order to maintain competitiveness in the market. The global rice market had previously surged to its highest prices in over 15 years after India imposed a ban on white rice exports and a 20% duty on parboiled rice exports last year. This situation allowed competing suppliers to gain market share and command higher prices.
As of Monday, India’s 5% broken parboiled variety was quoted at $500 to $510 per metric ton, down from last week’s prices of $530 to $536. Additionally, Indian 5% broken white rice was offered around $490 per ton. Other exporters in Vietnam, Pakistan, Thailand, and Myanmar have also lowered their prices by at least $10 per ton as they adjust to the new market dynamics. Key importers of rice from Asia include the Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia.
While exporters and buyers are currently assessing the potential impacts of increased Indian rice supplies, industry experts suggest that rice prices are expected to stabilize over the week. India accounted for more than 40% of global rice exports in 2022, with a record 22.2 million metric tons out of a total 55.4 million metric tons of worldwide rice trade. In related developments, Thai rice prices also saw a decline, quoted between $540 and $550 on Monday, down from last week’s $550 to $560 per ton. Experts warn that while rice prices are starting to correct in Vietnam, the full effects of India’s increased supplies have yet to be fully realized, urging exporters to remain cautious and avoid precipitous price reductions.
