RATES of parboiled rice exported from top hub India advanced to record highs this week on limited supplies and steady demand from Asian and African buyers, while prices eased in Vietnam and Thailand.

India’s 5 per cent broken parboiled variety was quoted at record US$533 to US$542 per tonne this week, up from last week’s US$525 to US$535.

“Supplies in the market are limited since the government’s paddy buying is leaving little for private players. Additionally, rice milling of the new season crop is currently underway, further reducing the availability of milled rice,” said Nitin Gupta, senior vice-president of Olam Agri India.

India’s rice output is expected to drop this fiscal year for the first time in eight years, raising the prospect of New Delhi extending curbs on exports of the grain to control food prices in the lead-up to elections.

Vietnam’s 5 per cent broken rice was offered at US$630 per tonne, down from US$653 per tonne a week ago.

Traders noted that domestic supplies are accumulating, and that harvest has begun partially in the Mekong Delta, which is expected to peak in March.

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“Trading activity is slow as buyers are waiting for prices to fall further in anticipation of stronger supplies from the upcoming winter-spring harvest,” a trader based in Ho Chi Minh City said.

Thailand’s 5 per cent broken rice prices was quoted at US$663 to US$665 per tonne, down slightly from US$665 last week.

Prices softened due a weakening baht, said a Bangkok-based trader.

However, there was domestic activity and a fresh order for 0.5 million tonnes from Indonesia, which helped buoy prices, he added.

Rice prices in Bangladesh stayed elevated after a sharp rise last week despite good yields and record reserves, prompting Prime Minister Sheikh Hasina to issue orders for immediate action against rice hoarders. REUTERS