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India rice prices drop to five-month low; Vietnam hits multi-year high

Reuters  |  BENGALURU 

By Verma

BENGALURU (Reuters) - prices in top exporter fell this week to their lowest in five months as the rupee depreciated, while rates in hit a four-year high amid stronger demand and limited supplies.

India's 5 percent broken parboiled variety prices dropped by $3 to $404-$408 per tonne.

The continuous correction in the rupee has allowed exporters to reduce export prices in dollar terms, said an exporter based at Kakinada in the southern state of

The rupee has fallen about 6 percent so far in 2018 to its lowest in 16 months, increasing exporters' margins from overseas sales.

"Indian is becoming more competitive in the world market due to the falling rupee," said another exporter based at Kakinada.

exports in surged 18 percent to a record 12.7 million tonnes in the 2017/18 financial year, which ended on March 31, on good demand for non-basmati rice from Bangladesh, and

An at Bangladesh's food ministry, however, said the country would not require hefty rice imports this year. emerged as a major importer in 2017 after floods damaged its crops.

"The government's stock levels have improved significantly. I don't think would need to import a huge amount this year again, even if rice crops are affected by flooding."

Meanwhile, in Vietnam, prices of 5 percent broken rice rose to $460-$465 per tonne from $455-$460 a week earlier. It was the highest level since August 2014.

"about Indonesia's plan to buy another 500,000 tonnes gives an additional push to the price amid tight supplies and the recent offers from the Philippines," a Ho Chi Minh City-based said.

"is expected to work directly with Southern Food Corp and Northern Food Corp to buy the grain in private placements, rather than opening a tender."

In Thailand, prices of 5 percent broken rice eased slightly to $435-$440 a tonne, free on board (FOB) Bangkok, from $435-$445 last week, on a weaker baht.

Demand was slow, Bangkok-based traders said, but they hoped lower prices would attract buyers.

"The market is still quiet, but with lower export prices now, there is more chance of sales," a in said.

Thailand, the world's second-biggest rice exporter, will hold an auction for the last 43,700 tonnes of rice fit for human consumption from state stockpiles on Friday. A separate lot of 2 million tonnes, which is unfit for human consumption and for industrial use, will be auctioned next month.

(Reporting by in Bangkok, Khanh Vu in Hanoi, Rajendra Jadhav in Mumbai and Ruma Paul in Dhaka; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 17:44 IST