HANOI (Reuters): Vietnam's rice export prices retreated to their lowest in more than three years amid sluggish demand and abundant supply, while Indian rates held steady near a 19-month trough.
"Prices fell on strong supplies while demand remains weak. The winter-spring harvest has started and is expected to peak next month," a trader based in the Mekong Delta province of An Giang said.
Vietnam's 5% broken rice
"Buyers from the Philippines have slowed down their purchases, but are gradually returning to buy as they think Vietnamese prices have bottomed," he added. The Philippines is Vietnam's largest rice export market.
Top exporter India's 5% broken parboiled variety
Indian 5% broken white rice was priced at $395 to $405 per tonne this week.
A Kolkata-based exporter attributed the reduced demand for Indian rice to the competitive prices of Vietnam's new season crop.
The Indian rupee hit a fresh record low earlier in February, which effectively increased traders' margins from overseas sales.
Thailand's 5% broken rice
Prices held due to exchange rate conditions but were under pressure from new supply from Vietnam and especially Indian exports, a trader said.
Demand from regular customers like Indonesia and the Philippines has also been quiet, said another trader.
Elsewhere, Bangladesh will import 100,000 tons of white rice from Vietnam under a state-to-state deal at $474.25 per ton, officials said, as it looks to curb rising prices that have been burdening consumers.
(Reporting by Daksh Grover in Bengaluru, Vu Khanh in Hanoi, Rajendra Jadhav in Mumbai, Chayut Setboonsarng in Bangkok and Ruma Paul in Bangladesh; Editing by Mrigank Dhaniwala) - Reuters
