Asia rice: Higher reserve price makes Indian rice exports costlier; Bangladesh rates firm

India’s rice export prices extended gains this week amid increased reserve price and supply concerns driven by slow planting due to dryer weather, while Bangladesh rice prices stayed firm as flood fears outweighed ample stockpiles. India’s 5% broken parboiled variety was quoted at $348-$352 per ton this week, up from last week’s $340-$345. Indian 5% broken white rice was priced at $350 to $357 per ton. The government’s increase in the reserve price for rice sold under the Open Market Sale Scheme (OMSS) lifted domestic rates, forcing exporters to increase offer prices, said Mukesh Jain, an exporter based at Raipur, Chhattisgarh. “But buyers are unwilling to purchase at these prices. Export demand is very weak.” Farmers have planted summer-sown rice on 6 million hectares as of July 5, down from last year’s 6.93 million hectares. In Bangladesh, rice prices remained elevated despite comfortable government stockpiles, as concerns over flash floods fuelled fears of further crop losses. Pre-monsoon floods have destroyed more than 200,000 metric tons of rice this year, while government warehouses hold more than 1.8 million metric tons. Meanwhile, Thailand’s 5% broken rice was quoted at $450 per ton, down slightly from last week’s $465. Demand was largely limited to regular customers, with Indonesia and Malaysia yet to place large-volume orders, a Bangkok-based trader said. “Supply could contract by 20%-30% due the war (between the U.S. and Iran), pushing up production and transportation costs and causing farmers to reduce planting areas,” the trader said, adding that the weather was also a concern for the July-August harvest. Vietnam’s 5% broken rice was offered at $445-$450 per ton on Thursday, unchanged from last week. “Demand from top buyer, the Philippines, remains strong,” a Ho Chi Minh City-based trader said, noting that the Philippines’ rice imports in the first half of this year rose 20% from a year earlier. Vietnam’s rice exports in January-June rose 6.5% to 5.02 million tons, while export revenue fell 2.5% to $2.38 billion, government data showed.