West African parboiled rice 5% prices fall to lowest level in 10 months

The price of Platts parboiled 5% STX CFR Cotonou rice has dropped to $561 per metric ton, marking its lowest level in the last 10 months from Jan. 16 to Oct. 9, influenced by India's recent export duty cuts, according to S&P Global Commodity Insights,

India reduced its export duty to 10% from 20% on Sept. 27 and lifted the ban on non-basmati white rice exports. Following these changes, the price of West African parboiled rice fell by $39/t from Sept. 27 to $561/t on Oct. 9, a 6.5% decline over a two-week period.

“The destination market has yet to fully adjust to recent price changes in origin markets,” a Benin-based importer said regarding the impact of the lower taxes. There are concerns about potential further price declines, creating a cautious atmosphere among buyers and sellers.

Despite the declining trend, rice demand is showing mixed signals. Indian exporters noted that they expected a rise in demand due to upcoming Christmas and New Year celebrations, but such demand has not materialized.

Importers expressed that current demand is sluggish due to market volatility, with many waiting for stabilization before making significant purchases. “Due to this fluctuation, everyone is waiting," an exporter remarked. Another importer added, “There will be more clarity in the price in the coming weeks.”

Based on data from S&P Global Commodity Insights, West African destinations have imported a total of 2.6 million tons of parboiled rice from India in break bulk over the past 10 months.