Rupee plunge pulls Indian rice export rates to 17-month low

Indian rice export prices extended declines to a 17-month low this week on depreciation in rupee to a record low, and demand remained muted in key hubs during the holiday period, reports Reuters.

Top exporter India's 5 per cent broken parboiled variety was quoted at $439-$445 per tonne this week, down from the last week's $440-$446. And Indian 5 per cent broken white rice was quoted $446-$453 per tonne.

"This week, exporters adjusted prices considering the fall in the rupee. Demand was subdued because of Christmas vacations," a New Delhi-based dealer with a global trade house said.

The Indian rupee hit a record low against the dollar this week, effectively increasing the margins of exporters.

Elsewhere, prices slipped in Thailand and Vietnam as activity slowed during the holiday period.

Thailand's 5 per cent broken rice was quoted at $502 per tonne, down from last week's $512.

The supply situation currently remains unchanged, a Bangkok-based trader said. However, Thai traders expect further price decreases after the New Year due to an increase in the global supply of rice from India.

Vietnam's 5 per cent broken rice was offered at $405 per metric ton, down from $495-$508 a week ago, according to traders and the Vietnam Food Association.

A trader based in the Mekong Delta province of An Giang said domestic sales are also weak as supplies from the autumn-winter harvest are running low.

State media cited the association chairman Nguyen Ngoc Nam as saying Vietnam's rice exports will face fiercer competition next year, with the expectation of more shipments from India and Indonesia's efforts to cut down on imports.