Rice prices across Asia have started to decline amid weakening demand and increased supply from the new harvesting season, with Thailand witnessing its lowest prices in 18 years. Market insiders warn that prolonged low prices may discourage Thai farmers from cultivating paddy in the next season, potentially affecting future supply.
On Thursday, the price of Thailand’s 5 percent broken rice fell to $335 per tonne, down from $338 the previous week. Traders say foreign buyers are purchasing limited quantities of Thai rice as India is offering rice at significantly lower prices in the global market. Additionally, fresh supplies entering the market at the end of the monsoon season have added downward pressure on prices.
India’s rice market is also experiencing increased supply due to the arrival of new crops. Last week, prices of 5 percent broken parboiled rice ranged between $344 and $350 per tonne, while non-parboiled rice prices remained stable at $350–$360 per tonne. India’s large production volume and competitive pricing have intensified competition in the Asian rice export market.
In Vietnam, prices of 5 percent broken rice hovered between $415 and $430 per tonne, although trading activity remained sluggish. Despite weaker sales, Vietnam’s rice exports are expected to reach around 8.8 million tonnes this year, reflecting strong export capacity.
Experts believe that rising supply combined with subdued demand could keep rice prices under pressure across Asia in the near term. However, they caution that sustained low prices may influence farmers’ planting decisions, which could alter supply dynamics in the future.
GLIVE/TSN