Global Rice Market Faces Downturn

Thailand’s 5% broken rice prices have fallen to $395-400 per tonne, marking the lowest point since January 2022. This decline is part of a broader trend affecting major rice-exporting countries, including India and Vietnam, as global demand weakens.

Impact of New US Tariffs

The US has announced significant tariffs on imports from India, Thailand, and Bangladesh, with rates of 26%, 36%, and 37% respectively. These measures are expected to further strain the rice export market, although Vietnam remains unaffected directly.

Market Reactions and Challenges

Indian rice exporters report subdued demand from African buyers, leading to a near two-year low in prices for the 5% broken parboiled variety. Overseas buyers are exercising caution due to recent sharp price drops, according to industry experts.

In Vietnam, prices have seen a slight increase as the winter-spring harvest concludes. Meanwhile, Bangladesh struggles with high domestic rice prices despite import efforts, putting pressure on consumers.