Prices of rice shipped from Thailand declined to an over three-year low this week due to U.S. President Donald Trump's move to impose import tariffs and an existing market surplus, while India's export prices neared a two-year low on subdued demand.
A flat 26% tariff was imposed on all goods being exported by India to the U.S., while Thailand's exports to the U.S. will attract 36%, Bangladesh 37% and Vietnam 46%.
Thailand's 5% broken rice fell to $395-$400 per metric ton, its lowest since January 2022.
Demand has disappeared because of the U.S. import tariff announcement and oversupply, said a Bangkok-based trader. "The Thai rice situation is very worrying."
Another trader said the market was very quiet because buyers were slowing down purchases.
"The U.S. tariffs will have a negative (impact) on Thai rice," the trader said, adding that lower prices from India would push Thai prices lower.
India's 5% broken parboiled variety was quoted at $392-$400 per ton and fell to its lowest level in nearly 22 months on subdued demand from African buyers amid ample supplies.
Indian 5% broken white rice was priced at $380 to $385 per ton this week.
Overseas buyers incurred losses due to the sharp drop in prices over the last few weeks, so they are cautious about new purchases, said Himanshu Agrawal, executive director at Satyam Balajee, a leading rice exporter.
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