Indian 5% broken white rice prices slumped to a near two-year low Jan. 20, as the government's 2.4 million-mt allocation of rice for ethanol production under the Open Market Sale Scheme (Domestic) policy has intensified the downward pressure on the country's white rice market, S&P Global Commodity Insights data showed.Platts, part of Commodity Insights, assessed Indian 5% broken white rice at $414/mt FOB Jan. 20, down $29/mt month over month and lower by $11/mt since Feb. 22, 2023, when it was at $425/mt FOB.On Jan. 17, India allocated 2.4 million mt of rice to sell from the central pool for ethanol production under the OMSS policy at Rupee 22,500/mt ($260/mt), while private and cooperatives will continue to buy at Rupee 28,000/mt ($323.50/mt) through the Open Market Sale Scheme.The steep price decline is likely to boost Indian-origin rice competitiveness in the region and pressure Indian parboiled 5% rice prices, market sources said.On Oct. 23, 2024, India's Ministry of Commerce and Industry announced the removal of the minimum export price of $490/mt for non-basmati white rice, which had been introduced following the lifting of the country's white rice export ban on Sept. 28, 2024. India had initially imposed the export ban in July 2023.The increased market supply of rice has pressured white rice prices, with an Odisha-based miller noting WR 5% local prices down "Rupee 2,000/mt" in a week.Another trader said local 100% broken price also dropped "Rupee 2,000-3,000/mt" and was selling at "Rupee 25,000/mt".As of Jan. 20, Platts assessed Thai rice at $449/mt FOB, Vietnamese rice at $409/mt FOB, Pakistani rice at $442/mt FOB and Myanmar rice at $459/mt FOB FCL, according to Commodity Insights data.Despite lower Indian 5% WR prices, Vietnam WR 5% remained the most competitive, at a $5/mt discount to Indian rice.
Market participants said paddy prices will likely fall as well amid lower prices for byproduct like 100% broken WR and weak demand for white rice.They also noted that declining white rice prices are likely to pressure parboiled 5% rice prices, as markets like Togo and Ghana might shift their buying interest from parboiled 5% rice to white rice if Indian white rice remains competitively priced.Platts assessed Indian PB 5% STX at $439/mt FOB, $2/mt lower week over week and unchanged month over month.India is forecast to export 21.5 million mt of rice in marketing year 2024-25 (October-September), up 49.3% year over year, according to Commodity Insights data.
