The six-month (Feb-Jul) average price of Indian rice was stable compared to the previous six months, and 2% lower y-o-y. Prices fell 3.6% to the two weeks to 1st April, to a three-year low, due to a weaker rupee and subdued demand. However, as a result of the coronavirus pandemic, prices rose by 9.4% from end-May to the beginning of July, as some countries introduced export restrictions.
In Thailand, the coronavirus pandemic led to panic buying by consumers amid yield concerns due to severe drought across the country, which caused rice prices to rise to their highest level since August 2012, on 8th April, at $572/MT. As a result, the six-month (Feb-Jul) average price increased by 21% h-o-h and 26% y-o-y. However, tepid demand as a result of strong competition caused prices to fall by 11.7% in the two weeks to 8th July.
Meanwhile, Vietnamese rice prices reached the highest levels for more than seven years in June, reflecting a disrupted harvest due to heavy rain and strong demand. In addition, the various export restrictions due to the coronavirus pandemic resulted in logistical issues and panic buying, supporting price increases. As a result, the six-month (Feb-Jul) average price was 19% higher than the previous six months.
From economical to political, all the factors impacting the rice market have been analysed to provide a market outlook for the next six months. Mintec’s market outlooks (schedule) provide insights on factors shaping the market dynamics of various commodities, providing the opportunity for market participants to stay ahead of factors that will impact procurement decisions. Please visit our Mintec Analytics platform to find out more.