India loses out on some orders as prices near 2-month high



* Exporters in Hanoi face worker shortages

* No buyers for Thai rice even as rain aids crop- trader

* Bangladesh domestic prices continue rising despite hefty imports

By Arundhati Sarkar

Sept 16 (Reuters) - Rice export prices in India climbed to a nearly two-month peak this week on an appreciating rupee, but demand was tepid as buyers opted for cheaper offers from elsewhere.

India's 5% broken parboiled variety RI-INBKN5-P1 was quoted at $360 to $365 per tonne this week — the highest since late-July — up from last week's $358-$363.

The rupee INR=D4 has gained about 0.7% this month, trimming exporters' returns and prompting them to raise prices in dollar terms.

"Some buyers are moving to Myanmar and Pakistan, which are also offering rice at competitive prices," said an exporter in Kakinada, Andhra Pradesh.

Yet, India could account for as much as 45% of global rice exports in 2021, thanks to expanded port-handling capacity.

Prices for Vietnam's 5% broken rice RI-VNBKN5-P1 rose to $410-$420 per tonne from $400 last week, as demand improved.

Supplies from Vietnam, however, still faced hurdles due to container shortages and pandemic-led restrictions, a trader in the Mekong province of An Giang said.

"Many exporters are facing worker shortages to handle rice transport and shipments."

Thailand's 5% broken rice RI-THBKN5-P1 prices eased to $380-$393 per tonne on Thursday, from $380-$402 last week, with the market quiet amid high freight costs.

"There is good supply because of rain, but there are no buyers. The government should roll out some measures to support rice farmers and exporters," a Bangkok-based trader said.

Meanwhile, domestic prices in Bangladesh, traditionally a top producer that emerged as a major buyer after floods, rose again this week despite hefty imports.

The government recently let private traders import 1.7 million tonnes and cut import duties to curb soaring prices. It imported 300,000 tonnes in the last two months, officials said.

"Around 4,000 tonnes are being imported everyday from India through land ports. But the government should lift import duty," a Dhaka-based trader said.
Reporting by Rajendra Jadhav in Mumbai, Patpicha Tanakasempipat in Bangkok, Ruma Paul in Dhaka, additonal reporting by Ashitha Shivaprasad in Bengaluru; Editing by Amy Caren Daniel and Shinjini Ganguli

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.