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The main reasons are the depreciation of the Indian currency and a sharp increase in shipping costs due to the conflict in the Middle East.
In India, rice prices continued their downward trend due to the rupee falling to a record low and sluggish market demand driven by high shipping costs. Specifically, parboiled rice with 5% broken grains traded at $343-350 per ton this week, down from $348-353 per ton last week. White rice with 5% broken grains was offered at $342-348 per ton.
A representative of an export company in New Delhi said that customers are currently waiting for freight rates to cool down, as they have accumulated sufficient inventory from imports in recent months.
Meanwhile, in Vietnam, the price of 5% broken rice also fell to $350-355 per ton, compared to $355-360 per ton last week. A trader in Ho Chi Minh City commented that although domestic supply is abundant, soaring shipping costs due to the US-Israel-Iran conflict have hampered exports.
In Thailand, the price of 5% broken rice remained almost unchanged, fluctuating between $365-370 per ton compared to $370 per ton last week. According to traders, buyers are maintaining a cautious attitude, closely monitoring developments in the Middle East amid escalating transportation costs.
Purchasing power from the African market has emerged but is not yet strong enough. The Thai market is currently awaiting supplies from the new harvest at the end of this month. Some experts predict that Thai rice prices may rise in the near future due to increased energy and consumer goods costs, and the risk of lower yields compared to 2025.
Meanwhile, in Bangladesh, domestic rice prices remain high despite good harvests and ample national reserves. In particular, the price of fragrant rice continues its upward trend due to soaring demand ahead of the Eid-ul-Fitr festival. To cool the market, the Bangladeshi government has stepped up procurement efforts and allowed private companies to participate in rice imports.
