Rice prices falling in Asian markets

Demand for rice in Asia has begun to decline. On the other hand, the supply of new season rice has increased. As a result, rice prices in Thailand have fallen to an 18-year low.

Industry sources say that prolonged low prices may lead farmers in the country to reduce rice cultivation. On Thursday, the price of 5 percent broken rice in Thailand was $335 per ton, down from $338 per ton the previous week. Because India is supplying rice at much lower prices, foreign buyers are now purchasing only small quantities of Thai rice. The new supply at the end of the monsoon season is also a factor in the price drop.

In India, the supply of the new crop has also increased. Last week, the price of 5 percent broken parboiled rice ranged from $344 to $350 per ton, and the price of parboiled rice remained stable at $350–$360 per ton. In Vietnam, the price of 5 percent broken rice remained at $415–$430 per ton, but sales were lower. Rice exports from Vietnam may reach 8.8 million tons this year.

Experts believe that due to increased supply and lower demand, rice prices in Asia may continue to trend downward.
Source: Business Recorder

Khaborwala/TSN