Indian rice export price improves on better foreign demand

21-Jun-2024 01:33 PM

Hyderabad. The export offer price of Indian rice rose to a three-month high during the current week due to strong demand from foreign importers and the Central Government increasing the minimum support price (MSP) of paddy for the 2024-25 season.

It is known that on June 20, the government increased the MSP of paddy for the 2024-25 season by 5.4 percent to Rs 2300 (27 dollars) per quintal at Rs 117. As a result,

the export price of the arrivals increased. The domestic market price of rice is also likely to increase. According to trade analysts,

foreign importers have already been buying Indian rice well and will continue to do so because despite the increase in the offer price, Indian rice will remain cheaper than other exporting countries.

Despite the ban on commercial export of 100 percent broken and non-basmati white (raw) rice, India remains the largest exporter of rice in the world.

The export offer price of India's 5 percent broken rice was running at $539-546 per tonne last week, which increased to $544-552 per tonne in the current week. On the other hand, the export offer price of Vietnam's 5 percent broken rice fell from $570-575 to $570 per tonne.

A trader from the Mekong Delta says that the business of Vietnamese rice has slowed down a bit because buyers (exporters) are stopping its purchase. Actually,

Vietnamese exporters are waiting for the official reduction in import duty on rice in the Philippines. It is heard that the proposal for duty reduction in the Philippines is under consideration and the decision to give its final approval by the President is likely to be taken between July and September.

The new crop of paddy is currently being harvested in the Mekong Delta, which will continue till the end of next month. This has also affected the domestic market price of rice.