29Apr
Global rice prices are witnessing an upward trend after hitting two-year lows, driven primarily by declining stock levels in key exporting nations like Thailand and Pakistan.
"Prices have begun to rise over the past couple of days, particularly in Thailand, as available stocks have dropped," said Rajesh Jain Paharia, a New Delhi-based rice exporter. Exporters and traders are closely monitoring the developments as reduced supply from major players is expected to tighten global availability and support higher prices in the coming weeks.
In Thailand, a key global supplier of premium rice varieties, inventory depletion has triggered a rally in local and export prices. Similarly, Pakistan's declining rice stocks have added to the tightening supply situation, reinforcing the bullish sentiment in the international market.
However, the situation in India presents a contrasting picture. According to B.V. Krishna Rao, President of The Rice Exporters Association (TREA), the Indian rice market is currently facing downward pressure.
The state of Chhattisgarh is preparing to float two tenders to sell a combined 3.5 million tonnes of rice into the open market, a move that is expected to weigh on domestic prices. "The Indian market is under pressure at the moment as Chhattisgarh plans to release a significant volume of rice into the market through tenders," Rao noted.
The influx of such a large quantity could temporarily increase domestic supply, keeping prices subdued despite the strengthening global market.
Analysts suggest that while global trends could eventually pull Indian export prices higher, domestic dynamics — including government interventions and state stock management — will play a critical role in determining the near-term price outlook for Indian rice.
Overall, while global rice prices are firming up due to tightening supplies from major exporters, the Indian market faces immediate headwinds, highlighting the complex interplay between local and international market forces.
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