April 23, 2025 | 18:38 GMT +7

  • Click to copy
Friday- 10:53, 14/03/2025

Indian rice prices drop amid increased competition and declining demand

(VAN) Indian rice prices have plunged to a 21-month low, shaking up global rice dynamics as key players like Vietnam and Thailand adjust their pricing strategies.
ASIA RICE-Stiff competition pushes India prices to 21-month low.

ASIA RICE-Stiff competition pushes India prices to 21-month low.

What’s going on here?

Indian rice prices have plunged to a 21-month low, shaking up global rice dynamics as key players like Vietnam and Thailand adjust their pricing strategies.

What does this mean?

India's 5% broken parboiled rice is now priced at $403-$410 per tonne, dropping noticeably from last week's $409-$415 range. This fall, driven by dwindling demand and increased competition, aligns with India's recent decision to lift the September 2022 export ban on 100% broken rice. Meanwhile, Vietnam has raised its prices to $392 per metric ton due to harvests from the Mekong Delta, without reporting government stockpiling. Thailand's similar rice now costs $405-$408 per tonne, down from $415, affected by currency fluctuations. These pricing shifts show the competitive tension as Thailand and Vietnam navigate supply challenges and economic adjustments. Conversely, Bangladesh is boosting imports from Vietnam, Myanmar, and Pakistan through strategic deals due to high domestic rice prices.

Why should I care?

The current price drop in India's rice sector and pricing adjustments by Vietnam and Thailand spotlight an ongoing battle for global market share. Indian exporters, facing lower demand, may find that reduced prices attract new buyers, potentially disrupting established market positions. Meanwhile, Thailand's exporters might struggle against competitively priced rice from India and Vietnam amid currency volatility. Investors should keep an eye on how these dynamics affect the profitability of rice-exporting firms and trade balances in Asia.

The realignment of rice export strategies in India, Vietnam, and Thailand carries broader implications for global food security and economic partnerships. With Bangladesh increasing imports to stabilize its high domestic prices, it underscores the interdependence of nations in securing staple food supplies. These shifts could lead to trade deal renegotiations, strengthen regional alliances, and prompt other nations to reevaluate their rice import strategies.

H.D

finimize

Tariffs could reshape U.S. rice prices

Tariffs could reshape U.S. rice prices

(VAN) Nations that export rice to the United States were among the hardest hit by new tariffs announced April 2, including the country’s top rice-trading partner: Thailand.

Fruits, nuts and inclusions slated to drive market growth to $18.7B by 2027

Fruits, nuts and inclusions slated to drive market growth to $18.7B by 2027

(VAN) Consumers look for indulgence, flavor, color, and crunch in yogurt, ice cream, and more.

Russian poultry industry’s profitability dives into red

Russian poultry industry’s profitability dives into red

(VAN) Russian poultry farmers have suffered losses in recent weeks from selling broiler meat and eggs to retailers and wholesalers as oversupply tightens its grip on the market.

Proactively connect with the market to maintain pepper exports

Proactively connect with the market to maintain pepper exports

(VAN) Pepper export businesses are boosting sales to the EU, India, the Middle East, and other markets to sustain exports, even in the face of unfavorable U.S. reciprocal tariffs.

Market analysis: Egg shortages and prices in Europe and the US

Market analysis: Egg shortages and prices in Europe and the US

(VAN) In northwestern Europe, poultry farmers can take full advantage of exceptionally high prices.

Vietnamese cashew nuts: From farm to global table

Vietnamese cashew nuts: From farm to global table

(VAN) Cashew nuts are not only a nutritious food but also a golden raw material in both cuisine and export, contributing to elevating Vietnamese agricultural products onto the global stage.

Wood products export value from Bac Kan declined by $10 million

Wood products export value from Bac Kan declined by $10 million

(VAN) Orders from wood processing businesses in Bac Kan Province for export to the U.S. have been cancelled or suspended, even all orders cancelled in some cases.

Read more