asia

Asia Rice-Vietnam export rates rise as floods and landslides hit supply


* Bangladesh to double domestic rice procurement

* Shortage of rail cars, port congestion hits Indian traders

* Rates for Indian variety ease to $370-$375/tonne

By Anjishnu Mondal

Oct 29 (Reuters) – Vietnamese rice export prices rose this
week as supplies were thinned by floods and landslides, while
logistical constraints slowed shipments out of India.

Vietnam’s 5% broken rice <RI-VNBKN5-P1> prices rose to $495
per tonne on Thursday from $485-$495 last week.

“Supplies are thin, while domestic demand is on the rise as
millions of people in central Vietnam have been affected by a
series of floods and landslides,” a trader based in An Giang
province said.

Vietnam’s exports in the first 10 months of this year were
forecast to have dropped 4% from a year earlier to 5.29 million
tonnes, government data showed.

Shipments from top exporter India slowed as exporters
struggled to secure rail wagons and due to congestion at a key
port.

“Logistical issues have slowed down exports. The sharp rise
in container freight rates have also been hitting traders, ” B.
V. Krishna Rao, president of the Rice Exporters Association
said.

Rates for India’s 5 percent broken parboiled variety
<RI-INBKN5-P1> fell to $370-$375 per tonne from $372-$377 last
week.

A depreciation in the rupee has allowed exporters to offer
rice at competitive prices, said an exporter based at Kakinada
in the state of Andhra Pradesh.

Neighboring Bangladesh, which has been grappling with
dwindling supplies and a spike in domestic prices amid a
worsening pandemic, is set to nearly double rice procurement
from an upcoming harvest beginning mid-November, after an
earlier drive to shore up supplies fell short of targets.

The government will buy 650,000 tonnes of rain-fed Aman rice
variety from farmers, up from about 380,000 tonnes bought last
year, the food ministry said.

Meanwhile, Thailand’s 5% broken rice <RI-THBKN5-P1> prices
rose to $452-$480 from $435-$440 a week earlier.

“Domestic demand is higher and some foreign ships have come
to pick up orders (exports),” a Bangkok-based rice trader said,
adding he expected the rise to be short-lived.
(Reporting by Anjishnu Mondal in Bengaluru, Khanh Vu in Hanoi,
Rajendra Jadhav in Mumbai, Ruma Paul in Dhaka, and Patpicha
Tanakasempipat in Bangkok; Editing by Arpan Varghese and
Shailesh Kuber)

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