Global rice prices fell on Monday following the decision of India, the world’s largest exporter, to resume exports, which expanded the supply available on the international market. This new measure benefits importing countries in Asia and Africa, which now benefit from more affordable prices, as confirmed by industry players.
After suspending its exports the previous year, India authorized the resumption of sales of non-basmati white rice last Saturday. The turnaround comes as the country recently reduced the tax on parboiled rice to 10%, encouraged by abundant stocks and an ongoing harvest. In response to this increase in supply, competing producers, such as Thailand, Vietnam and Pakistan, have adjusted their prices downward to remain competitive.
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“All players are reviewing their prices to maintain market share,” said Himanshu Agarwal, managing director of Satyam Balajee, a major Indian rice exporter. Prior to this decision, global rice prices had reached high levels due to India’s restrictions in 2022. A ban on white rice exports and a 20% tax on parboiled rice had allowed other producers to increase their market shares at higher prices.
On Monday, Indian 5% broken parboiled rice was trading at $500-$510 per tonne, down from $530-$536 the previous week. Indian white rice prices also fell, hovering around $490 per tonne. At the same time, producers in Vietnam, Pakistan, Thailand and Burma have lowered their prices by at least $10 per tonne to adjust to the increase in global supply.
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