India’s rice export sector is showing renewed strength, supported by robust government reserves, favorable currency movements, and recovering global demand. While India gains momentum, top competitors Vietnam and Thailand continue to face subdued market conditions due to slow buying and ample domestic supply, according to a recent market report.
📈 Indian Rice Prices See Modest Rise
This week, Indian rice prices have edged up modestly. The widely traded 5% broken parboiled rice is now priced at $380–$386 per tonne, compared to $378–$384 last week. Similarly, 5% broken white rice is trading slightly higher at $373–$377 per tonne. According to Himanshu Agrawal, Executive Director at Satyam Balajee, one of India’s largest rice exporters, a weaker rupee is giving Indian exporters a pricing advantage in global markets. “The weaker rupee is giving exporters a small boost, and we’re seeing demand pick up again,” he told Reuters.
🏦 India’s Rice Reserves Hit Record High
India’s rice supply position remains exceptionally strong. As of June 1, government-held rice reserves stood at 59.5 million metric tonnes, more than four times the official buffer stock requirement for July. These large reserves not only offer price stability in the domestic market but also enable India to respond swiftly to rising international demand.
🇻🇳 Vietnam Pushes Exports Amidst Slow Demand
In contrast, Vietnam’s rice export prices saw a slight dip, with 5% broken rice dropping to $387 per tonne from $388. A trader in Ho Chi Minh City noted that sales remain slow, but the government is actively working to expand exports, particularly to China. A recent visit by Vietnamese rice exporters to Guangdong province is part of this effort to strengthen trade ties.
🇹🇭 Thailand Faces Currency Pressure and Weak Demand
Meanwhile, Thailand’s rice prices also declined slightly, falling to $397 per tonne from $398. Exporters in Bangkok attributed the drop to a strong Thai baht, which has made Thai rice less competitive globally. “There’s a lot of rice available, and we’re expecting a good harvest this year,” a local trader said. However, the low pricing environment is worrying farmers, as margins shrink despite strong harvest prospects.
🇧🇩 Bangladesh Struggles with High Retail Prices
In Bangladesh, rice prices continue to stay elevated despite several policy measures aimed at cooling the market. The government has increased public stock procurement, reduced import taxes, and enforced tighter market controls. Yet, retail prices remain unaffordable for many lower-income families, underscoring the struggle to balance supply, affordability, and trade.
🌐 Global Rice Market Outlook
The current dynamics in major rice-producing and exporting nations highlight the delicate balance between currency, reserves, trade policy, and climate conditions. India stands out with its strong supply cushion and currency-driven export competitiveness, while Vietnam and Thailand work through structural slowdowns in demand. Bangladesh’s domestic situation reflects the challenge of ensuring food affordability amid market volatility.
✅ Key Takeaway
India’s strong rice stockpiles and favorable currency movements have given its exporters a clear edge in global markets. While Vietnam and Thailand continue to grapple with demand-side concerns and currency pressures, India is well-positioned to consolidate its leadership in the global rice trade. However, price stability, farmer margins, and food accessibility remain critical watchpoints in the months ahead.
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