Rice prices soften in Asian countries after duty cut in India

25-Oct-2024 03:17 PM

Hyderabad. After the Government of India made the export of non-Basmati category of rice duty free and decontrolled, the export price of rice in major Asian exporting countries has started declining as the supply and availability of this important food grain in the global market is expected to increase significantly in the coming months.

The Government of India also removed the last hurdle when it withdrew the minimum export price of $ 490 per tonne fixed for non-Basmati white rice. As a result, the export offer price of rice in India and Vietnam fell to the lowest level in the last one year.

Earlier in India, the export duty on non-Basmati Sela rice was reduced from 20 percent to 10 percent and in the flood it was made completely duty free. After this, the Minimum Export Price (MAP) was removed from white rice.

The export offer price of India's 5 percent broken Sela category rice is currently running between $ 450 and $ 484 per tonne, which is the lowest level since August 2023. Similarly, the price of white rice with 5 percent broken content is being reported to be between $ 460 and $ 490 per tonne.

The export demand for Indian rice has gradually started strengthening and other exporting countries are being forced to reduce the price of their rice to face its competition.

Indonesia's grain procurement agency - Bulog has decided to cancel a tender issued for the purchase of rice, which increased pressure on the Vietnamese market.

On the other hand, the export offer price of Thailand's 5 percent broken rice has come down from $ 525 to $ 510 per tonne.

Its demand has also stabilized and exporters have to review the export price on a weekly basis. The customs duty on rice imports in Bangladesh has been reduced by a massive 37 percent and a decision has been taken to import 5 lakh tonnes of rice at the government level. India is expected to benefit from this.