iGrain India - Bangkok. Despite Indonesia's government agency Bulog awarding the tender for import of 1.50 lakh tonnes of rice to Vietnam instead of Thailand, the export offer price of Thai rice remained bullish last week because countries like Brazil and Mexico are showing good interest in its purchase.
In Brazil, the paddy crop has been badly damaged due to heavy rains and severe floods in Rio Grande do Sul, the main rice producing province, due to which it may be forced to import 10 lakh tonnes of additional rice.
There has been some increase in the export price of rice in Vietnam as well. The price of Indian non-Basmati Sela rice is relatively low, so foreign importers are still attracted to its purchase.
Although the commercial export of 100 percent broken rice and non-Basmati white rice from India has stopped, shipment of Sela rice is continuing.
Last week, the export offer price of 5% broken Indian Sela rice improved slightly to $536-544 per tonne as against $531-539 per tonne in the previous week. In comparison, the export offer price of 5% broken Thai rice improved from $630-635 per tonne to $635-640 per tonne.
This was the highest level in the last 3 months. Commentators say that the Thai rice business may be adversely affected due to the very high price. The price of 5% broken rice from Vietnam was $585-590 per tonne.
Good demand for rice is being seen in Indonesia while the Philippines has also been importing rice in good quantities from Thailand and Vietnam for a long time.