While Indian farmers and exporters are excited, the lifting of the ban on 100% broken rice exports is expected to cause a sharp drop in rice prices in competing countries.
Unloading rice at a port in the Indian state of Andhra Pradesh - Photo: REUTERS
"The policy on broken rice exports has been amended from prohibited to liberalized with immediate effect," India's Directorate General of Foreign Trade said in a notice this weekend.
Earlier, Indian rice exporters had urged the government to allow overseas shipments due to rising inventories.
Last year, the Indian government removed the minimum export price (MEP) of $490 per tonne for overseas shipments of non-basmati white rice, lifting a blanket ban on such shipments.
In a subsequent interview with S&P Global Commodity Insights , Mukesh Jain, president of the Chhattisgarh Rice Exporters Association of India, said he believes that lifting the ban on 100% broken white rice exports will boost business, revive closed mills and increase farmers' incomes.
This is part of the government’s measures to solve the output problem for rice farmers. In addition to lifting the export ban, authorities in some places in India have also exempted special taxes for rice mills.
Indian 100% broken rice is currently offered at $330 per tonne, higher than the $300 per tonne offered by Vietnam, Myanmar or Pakistan. Although the price difference is still there, the return of Indian rice will cause the market to adjust prices downward.
India’s 5% broken parboiled rice prices were quoted at $409-$415 a tonne, down from $413-$420 last week. India’s 5% broken white rice prices were quoted at $390-$400 a tonne this week.
A dealer in New Delhi said Vietnam is actively selling rice on the world market, which is putting some pressure on rice prices in other countries.
According to Mr. Jain, in the international market, the price of Vietnamese rough rice has decreased sharply, while Indian parboiled rice has increased slightly due to demand from rice tenders in Bangladesh and the impact of paddy prices.
There are 3,000 exporters dealing in parboiled rice from India, so according to him, Vietnam is not a significant supplier compared to India.
"In addition, the flavor of Indian rice is something that Vietnam cannot copy. However, market demand is currently decreasing in the West African region, putting pressure on prices," he continued.
The Vietnamese Ministry of Industry and Trade plans to meet with the Vietnam Food Association and businesses in March 2025 to organize trade promotion programs in the Philippines and China markets.
Vietnam's 5% broken rice was offered at $389 a tonne on March 6, down from $393 a tonne last week, traders said.
Meanwhile, Thai traders said demand was not much volatile and price fluctuations would largely depend on the exchange rate.
Thailand's 5% broken rice prices remained at $415 a tonne compared with the $415-$420 range quoted last week.
There are no signs of large-scale rice tenders coming up, so prices will remain above that level for a while, a Bangkok-based trader said.
The new supply is India, although added to the market, will have little impact on prices as large demand has not appeared in the market.
Source: https://tuoitre.vn/an-do-bo-lenh-cam-xuat-khau-gao-100-tam-gia-gao-viet-nam-truoc-nguy-co-lao-doc-20250309124902628.htm
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