(Ecofin Agency) – Since September, India’s announcement of the end of the majority of its export restrictions on rice has shaken up the market. The situation is changing for its Asian competitors who have until now benefited from the limitations which had made Indian cereal less competitive.
On October 2, the price of a tonne of Thai 5% broken rice stood at $509. This is according to the Thai Grain Exporters Association (TREA) on its website. This level marks the third consecutive week of decline in this reference rate in Asia and the lowest level since May 2008.
This price decline comes in the wake of a recent easing of India’s restrictions. The most populous country in the world authorized the resumption of exports of non-basmati white rice on September 28 with a floor price of $490 per tonne after reducing export duties on parboiled rice to 10%. compared to 20% previously.
If currently, players in the sector are still assessing the potential impact of this intervention, several observers nevertheless indicate that it is now reshuffling the cards on the market.
Indeed with the gradual return of cargoes from India, some analysts estimate that exporters from Vietnam, Pakistan and Thailand could be required to change the prices charged in the coming months depending on their harvest, demand for their cargoes or fluctuations in the exchange rate against the dollar in order to remain competitive.
Déjà, Reuters reports that they lowered their prices by at least $10 per tonne last Monday in the wake of India’s announcement. As a reminder, India’s rice exports in 2022 (22.2 million tonnes) were larger than the combined shipments of its 4 main competitors, Thailand, Vietnam, Pakistan and the USA.
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09/30/2024 – India: green light for the resumption of sales of non-basmati white rice
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