Asia’s Rice Market Declines, but Prices Rise in Bangladesh

Staff Reporter

While rice prices in Asian countries have fallen, they continue to rise in Bangladesh. Low demand and oversupply in India have pushed rice prices to their lowest levels since June 2023. In Thailand, export prices remain near a two-year low. Conversely, despite extensive imports at both government and private levels, rice prices in Bangladesh show no signs of decreasing.

According to a Business Recorder report, the price of 5% broken parboiled rice in India fell to $395–401 per ton this week, down from $403–410 per ton last week. A trader in New Delhi said, “Buyers are waiting for further price drops.” India has also allowed the export of 100% broken rice this month, lifting a ban imposed in September 2022.

In Thailand, the price of 5% broken rice remains stable at $405 per ton. A trader in Bangkok noted, “This year may be challenging for Thai exporters due to competition with India and Vietnam.” In Vietnam, the same grade of rice sold for $400 per ton, up from $394 per ton last week. A trader in the Mekong Delta said, “Prices may remain stable due to adequate supplies.” The Vietnamese government has introduced financial incentives and storage expansion plans for exporters.

In Bangladesh, 422,000 tons of rice have been imported by the government between July and March 25. Although a deal was made to import 900,000 tons, the private sector brought in only 286,000 tons this year, compared to zero last year. Despite 924,000 tons stored in government warehouses, rice prices have risen by 10 BDT per kilogram over the last six months. Coarse rice now sells for 60 BDT per kilogram, while fine rice costs 80 BDT.

In August, following floods and rising commodity prices, the government approved 1.8 million tons of rice imports for the private sector. However, traders have imported less than half of this amount. Food Directorate official Moniruzzaman stated, “Of the 900,000 tons permitted, only half has arrived due to port congestion delaying unloading.”

Traders cited high costs in India and Vietnam as reducing profitability. A Dinajpur importer noted, “I brought in only 10,000 tons out of an approved 35,000 tons due to low margins.” Babubazar trader Din Mohammad Swapan said, “While there’s no supply shortage, lower production has driven up the prices of premium varieties like Miniket and Nazirshail.”

Indian fine rice sells in local markets at 90–95 BDT per kilogram. Experts predict prices are unlikely to decrease before the Boro harvest. Last year’s floods destroyed 800,000 tons of rice, exacerbating the crisis. Food Secretary Md. Masudul Hasan stated, “To control prices, 700,000 tons of rice are being distributed at low or no cost during Eid.”