India’s rice export prices surged to a record high this week as traders sought clarity over how the export levy is calculated, while those in Thailand awaited fresh supplies to hit the market.
Top exporter India’s 5% broken parboiled variety RI-INBKN5-P1 was quoted at a record $552-$560 per ton this week, up from the last week’s $546-$554.
Indian traders are signing few of parboiled rice after customs officials changed the calculation method for the 20% export duty, resulting in a higher levy, four industry officials told Reuters earlier this week.
“Buyers are not ready to pay record prices. Sellers have limitations since the customs guys have changed the way they calculate duty,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.
Thailand’s 5% broken rice prices RI-THBKN5-P1 rose to $620-$622 per ton, from $615 quoted last week.
A Bangkok-based trader said that prices climbed because demand was steady, but expected crops to come in the following week.
Vietnam’s 5% broken rice RI-VNBKN5-P1 were offered at around $580, down from $600 a week ago but up from $575 earlier this week.
“Many importers are not rushing to buy as they know that Vietnam’s main harvest is peaking,” a trader based in Ho Chi Minh City said.
“Prices, however, are recovering as rice production is still facing the adverse impacts of El Nino phenomenon this year,” the trader said, adding that domestic traders are now buying to increase their inventories.
The Bangladeshi government has been struggling to control prices of the staple grain despite good harvest and reserves.
Bangladesh will distribute 150,000 tonnes of rice among 5 million families at subsidized rates before the Muslim holy month of Ramadan, the country’s food minister said.