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Indonesia buying to improve its reserves- Vietnam trader
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Rupee fall allows India traders to reduce export prices
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Demand from African countries is weak- India exporter
(Adds inputs from Bangladesh)
By Arundhati Sarkar
March 16 (Reuters) - Vietnam's rice export prices extended gains this
week as it shipped more of the staple grain to China, while rates in top
exporters India and Thailand were weighed down by a weakening in their domestic
currencies.
Vietnam's 5% broken rice prices were offered at $450 per
tonne on Thursday, up from $440-$445 range a week ago.
"Prices edged up as shipments to China are recovering, while Indonesia is
said to be buying more to improve its national reserves," a trader based in Ho
Chi Minh City said.
The central bank's move to cut its policy rates on Wednesday would give a boost to export activities, including rice shipments, the trader said. Top exporter India's 5% broken parboiled variety was quoted at $382 to $387 per tonne, down from last week's $385 to $390 range.
"Rupee's fall is allowing us to reduce export prices. Demand from African countries is also weak," said an exporter based at Kakinada in the southern state of Andhra Pradesh. Meanwhile, Thailand's 5% broken rice prices were quoted at $455 per tonne, down slightly from last week's $460. Prices were impacted by changes in the exchange rate, said a Bangkok-based trader.
"Supply and demand have been quiet," the trader said.
A weakening currency makes exports from the country cheaper in dollar terms.
Domestic rice prices in Bangladesh stayed high, while the government has
urged the people to refrain from panic buying as the Muslim fasting month
Ramadan is approaching, as prices typically rise during the month on more
demand.
(Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Chayut Setboonsarg
in Bangkok, Ruma Paul in Dhaka; Editing by Shailesh Kuber)
