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, reports Reuters.
Top exporter India’s 5 per cent broken parboiled variety was quoted at a record per tonne 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 per cent 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 per cent broken rice prices rose to $620-$622 per tonne, 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 per cent broken rice 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.