Indian rice traders hike prices to mirror higher export duty
Top exporter India’s rice export prices rose this week as traders factored in higher duty on rice shipments, while demand remained lacklustre in Thailand.
India’s 5% broken parboiled variety
“We’ve had to raise prices since the government is considering the total transaction value instead of Free on Board (FOB) value to calculate the 20% export duty. This has pushed our export prices higher,” said a New Delhi-based dealer with a global trade house.
The government imposed a 20% export duty on parboiled rice exports in August 2023 to control domestic rice prices. Exporters have received notices from the customs department demanding payment of duty differentials on rice exported in the last 18 months, four exporters told Reuters, a rare tax demand that could cripple rice shipments from India.
Thailand’s 5% broken rice prices
Prices softened due to a weakening baht and demand, said a Bangkok-based trader, but added that Indonesian buyers supported prices.
Another trader said Vietnamese rice was cheaper and that local supply was coming to a seasonal end, although there was some paddy left.
Vietnam’s 5% broken rice
“Exporters have slowed down their purchases from farmers after an U.S. forecast saying earlier this month that the Philippines might reduce its imports this year on rising domestic supplies,” a trader based in Ho Chi Minh City said.
The Philippines is Vietnam’s largest rice export market.
Meanwhile, Bangladesh’s rice prices stayed elevated despite good yield and reserves.
Officials noted that Bangladesh could allow private traders to import as much as 200,000 tonnes of rice in an effort to cool domestic prices of the staple grain.