Asian rice prices hit a 10-year low as global supplies surge on India's massive harvest, while major importers slow purchases to support domestic prices.
November 6, 2568 at 15.36:XNUMX a.m. Bloomberg News reported that Rice prices in Asia are expected to continue to decline. After India's rice production came out higher than expected, the global rice supply increased, while major importing countries slowed down their foreign purchases to support domestic prices and help farmers.
Nitin Gupta, Country Head, Olam Agri India Pvt. He said that some importing countries, particularly in West Africa, currently have rice reserves sufficient for domestic consumption of 3-5 months, resulting in the global market facing an oversupply, which will put downward pressure on rice prices in Asia.
In October, Asian benchmark rice prices fell to a decade-low. While this was good news for consumers who benefited from lower prices, it also put pressure on farmer incomes in key producing countries like India and Thailand. The Philippines, the world's largest rice importer, plans to extend its ban on foreign rice imports until April next year to protect its agricultural sector.
Information from the Thai Rice Exporters Association (TREA) The price of Thai 5% white rice is said to be at US$351 per tonne (as of October 22), the lowest level since September 2558, with mills in Thailand, Pakistan and Myanmar all offering white rice, parboiled rice and broken rice at prices at least 3% lower than India.
Rohith Singh, Director, Department of Consumer Goods Supply, Telangana State, India revealed that “We are looking for new markets to sell our surplus produce and help farmers.” along with stating that Government officials met with buyers from Benin, Kuwait and North Africa last week to negotiate the sale of surplus rice.
The Food and Agriculture Organization of the United Nations (FAO) projects that global rice production in 2568-2569 will reach a record high of 556.4 million tonnes, with Indian farmers beginning harvesting in late September and continuing through the end of the year.
Meanwhile, oversupply has led some buyers to adopt a more cautious purchasing strategy. Dharmendra Rawat, senior business development manager at Dubai-based Invictus Trading Fze, said the company will gradually purchase rice from India in small lots instead of large purchases, as it expects prices to continue falling in the coming period.
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