India officially banned the export of broken rice and imposed a 20% export tax on other types of rice, which immediately impacted the world rice market.
The price of Thailand’s 5% broken rice reached 430 USD per tonne, up 12 USD per tonne from the previous week. It is forecast that Thai rice prices will continue to increase soon due to the influence of India’s policy.
Meanwhile, India’s 5% broken rice price averaged 389 USD per tonne, up 6 USD per tonne from the previous week. Prices have increased due to the impact of the new export restriction policy of the Indian Government.
Vietnam’s 5% broken rice price was estimated at 405 USD per tonne, up 14 USD per tonne from the last week, mainly due to the influence of India.
The Vietnam Institute for Policy and Strategy for Agriculture and Rural Development said that India mainly exports dry rice (low-grade), while Vietnam exports large quantities of sticky rice and fragrant rice.
Although not in the same quality segment, India’s imposition of a 20% rice export tax has partly pushed the price of Vietnamese rice.
Businesses may lack supply from India, while animal feed manufacturers still have great demand, so the price of broken rice and by-products of Vietnam’s rice industry is forecast to increase shortly.