The Rice markets of Thailand cheered up on dual prospects of higher export growth as well as government’s plan to widen stockpiles to at least 10 million tonnes. This new development has brought smiles in the rice industry where subdued demand had the prices on the lower spectrum till now. The Thai benchmark 5 percent broken rice had priced firmed up to $355-$372 per ton, free-on-board-basis, against $365-$370. The traders welcomed the government’s initiative for increasing the storage capacity to curtail the oversupply of rice in the domestic market. Although some traders are still quoting lower due to thin demand, there is growing optimism overall, with increased exports targets to China and Iran.
Rice prices in some South Asian regions
As the prices were going northwards in Vietnam because of renewed demand from Philippines, the subdued environment of Thai rice market finally brightened. Out of the one million tonnes deal for the purchase of rice last year, next month will see 100,000 tonnes of rice going to China. Apart from this Thailand also aims to export 700,000 tonnes of rice to Iran annually. According to a report by Department of Agriculture, Thailand’s rice exports this year could rise 11 percent from 2015 to 10 million tonnes.
Philippine traders are looking to import 3.26 laces tonnes from Thailand and 2.8 laces tonnes from Vietnam. . Vietnam’s 5 percent broken rice prices rose to $345-$350 a tonne, FOB basis, from $335-$340 a week ago. At $350 a tonne, the price of 5 percent broken rice is the highest since September 14. In India, the world’s top rice exporter, prices of the 5 percent broken parboiled rice variety were steady at $365-$375/tonne. But according to an exporter in Andhra Pradesh the prices have corrected a bit on the expectations of higher supplies this season and lower demand from African buyers till now.
With lots of prevailing apprehensions in the South Asian regions of oversupply as well as diminishing export demands, Thai rice has something to cheer about going forward.