MUMBAI/HANOI (WAM)
Global rice prices fell on Monday after India, the world's No.1 exporter of the grain, gave the go-ahead for exports to resume, boosting global supply and helping poor Asian and African buyers secure more affordable supplies, Reuters reported.
India on Saturday allowed exports of non-basmati white rice. That came a day after New Delhi cut export duty on parboiled rice to 10 percent, buoyed by a new crop in the offing and higher inventories in state warehouses.
"Suppliers from Thailand, Vietnam, and Pakistan are responding to India's move by lowering their export prices," said Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter. "Everyone's trying to stay competitive to hold their spot in the market."
Global rice prices soared to their highest level in over 15 years following India's decision last year to ban the export of white rice and impose a 20 percent duty on parboiled rice exports.
Last year's export curbs imposed by India allowed competing suppliers like Vietnam, Thailand, Pakistan, and Myanmar to increase their market share and command higher prices in the global market.
The Philippines, Nigeria, Iraq, Senegal, Indonesia, and Malaysia are among the key importers of Asian rice.
Buyers and sellers are evaluating the potential impact of increased Indian rice supplies and accordingly, prices would settle this week, said Nitin Gupta, senior vice president of Olam Agri India.
India accounted for more than 40 percent of the world's rice exports in 2022, a record 22.2 million metric tonnes out of a total 55.4 million metric tonnes of global trade.