Rice export prices in top producer India fell this week to their lowest in 21 months, pressured by low demand and an expected bumper crop. India’s 5 percent broken parboiled variety was quoted around $361-$367 a tonne, the lowest level since January 2017, down from $365-$370 last week, report agencies.
Production of summer-sown Rice is estimated to grow 1.8 percent to 99.24 million tonnes. In July, the Indian government raised the prices paid to local farmers for common-grade paddy Rice by 13 percent from a year ago to 1,750 rupees ($25.50) per 100 kg for the year.
The higher government-fixed price, which would entail increased procurement costs for exporters, was unlikely to translate into higher export rates because of a weaker rupee.
Output in neighboring Bangladesh, was increased by 6 percent from a year ago to about 34.54 million tonnes in 2018/19, according to the U.S. Department of Agriculture attache in Bangladesh.