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India rice rates slip; tough Chinese rules dent Vietnam exports

Reuters  |  BENGALURU 

By Layek

BENGALURU (Reuters) - export prices fell a the second consecutive week in on a weakening rupee and slow demand, while strict inspections from top consumer muted exports from

India's 5 percent broken parboiled variety was quoted around $364-$368 per tonne this week, from $366-$370 the last week.

"Prices are down as traders are adjusting to the drop in the rupee. Demand is still weak," said an exporter based at Kakinada in the southern state of

The Indian rupee fell nearly 1 percent on Thursday to the lowest level in two weeks, increasing exporters margin from the overseas sales.

In an attempt to accelerate exports, the last month said it will give a 5 percent subsidy for non-basmati shipments for the four months to March 25, 2019.

In neighbouring Bangladesh, imports in July-November stood at 106,640 tonnes, the country's showed, after the government imposed a 28 percent tax on shipments to support its farmers after local production revived.

Meanwhile, in Vietnam, rates for 5 percent broken rice dipped to $400 a tonne from $408 last week as exports to fell on stricter inspections and conditions on Vietnamese rice, traders said.

"Exports to are almost frozen, no one dares to buy or sell. Some people who had their rice ready at the port now have to take them back because they fear the Chinese side will not take them," a in said.

However, the fall in prices was limited due to tight supply at the end of a small crop season in and orders from rice-scarce

The next major crop harvest in the southeast-Asian nation, the winter-spring crop, is due next March.

In Thailand, benchmark 5 percent broken rice prices narrowed to $390-$393, free on board (FOB) Bangkok, from $380-$397 last week.

"Apart from the recent order from the Philippines, Thai rice exporters are not expecting any large order until early 2019," a said.

Traders attributed this week's fluctuation in rice prices to the exchange rate. The Thai baht shed more than a quarter of a percent on Thursday, after rising for four previous sessions.[EMRG/FRX]

"Some exporters are still talking about a possible deal to markets like and Indonesia, but so far things are quiet and will likely remain this way until January," said another Bangkok-based

(Reporting by in Bangkok, Mai Nguyen in Hanoi, Ruma Paul in Dhaka and Rajendra Jadhav in Mumbai; Editing by David Evans)

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

First Published: Thu, December 06 2018. 18:35 IST