Indian rice prices ease to lowest in a year as rupee slides

Rice prices in India fell for the third straight week to their lowest level in a year as the rupee slipped to a 16-month low, while markets in other top exporters remained relatively muted. Rates for India's 5 percent broken parboiled variety dropped by $10 to $394-$398 per tonne.

“Indian rice is very competitive compared to supplies from Thailand and Vietnam. Export orders have improved as in dollar terms Indian prices have been falling,” said an exporter based at Pune in the western state of Maharashtra.

The rupee has fallen nearly 7 percent so far in 2018, increasing exporters' margins from overseas sales.

Meanwhile, summer rice output in neighbouring Bangladesh is likely to hit 19.7 million tonnes, exceeding the target of 19 million tonnes, as farmers raised acreage to cash in on higher prices, a government official said on Thursday.

Rice prices in the country, which emerged as a major importer in 2017 after floods damaged its crops, jumped around 40 percent last year due to depleting stocks, forcing the government to seek supplies from Asian countries like India, Thailand and Vietnam.

Thailand's benchmark 5 percent broken rice narrowed slightly this week to $435-$438 per tonnes, free on board (FOB) Bangkok, as against $435-$440 last week.

The country has sold rice to the Philippines in an international tender this week, a Bangkok-based rice trader said.