Bangladesh could import 1.8 million tonnes of rice this year, the highest in four years, the UN's Food and Agriculture Organisation (FAO) said in a report this week.Bangladesh emerged as a major buyer of rice after repeated floods last year destroyed crops and sent local prices to record highs.Indian rice export prices slipped to their lowest since mid-May this week as the rupee slide, while higher shipping costs capped a decline in Thai rates on prospects of an increase in supplies.Top exporter India's 5 per cent broken parboiled variety fell to $374-$379 per tonne from last week's $379-$383, mainly on a depreciation in the rupee to its lowest level in 1-1/2 months.Rupee's fall is allowing us to lower prices and demand is stable, said an exporter based at Kakinada in the southern state of Andhra Pradesh.Last week, India raised the price at which it will buy new-season common rice varieties from local farmers. This could encourage farmers to expand their area under rice, the exporter added.Thailand's 5 per cent broken rice prices slipped to $440-$486 per tonne on Thursday from $455-$484 last week. The anticipation of more supply due to rainfall weighed on prices, some traders said. Fertile country plans to import Oryza sativa Meanwhile, other traders said higher freight costs continued to be a factor in keeping prices high.Rice output should be higher this year because there is ample rain and sufficient water for production, a Bangkok-based trader said, adding there is more possibility of deals at this level. Already two Indian companies have bagged contracts for 100,000 tonnes of rice exports to Bangladesh.Our exporters are trying to outbid one another to get the Bangladesh tender. Quoting $406 CIF is risky when our prices are near $400, as they could face problems of unloading at Bangladesh ports. Chittagong is a congested port and Mongla is a river-based port with limitations.Two reasons for India gaining from Dhaka’s imports are that its prices are far more competitive than Thailand and Vietnam, the second and third largest exporters, and freight charges are cheaper as India is a neighbour Source:- Admin
