Rising demand for Thai parboiled rice in West Africa as price gap with India narrows

Demand for Thai parboiled rice is emerging in the West African market, as the price difference between Thai and Indian parboiled rice has declined sharply recently.

Platts, part of S&P Global Energy, assessed Thai PB 100% at $375/mt FOB and India PB 5% at $381/mt FOB on July 7. Indian parboiled rice 5% STX CFR Cotonou was assessed at $445/mt on July 4, up $25/mt frm a month ago.

A trader based in Thailand said Thai white rice is in demand in Iraq, but recent tensions in the Middle East have disrupted supply, leading to a decrease in demand.

Another trader in Thailand noted that around 2013, Thailand offered parboiled rice at a lower price than India.

If Thai rice becomes genuinely affordable, buyers would likely choose it due to its superior quality, a buyer in Benin said.

A Nigerian miller said if Thai parboiled rice were available, Nigerians would prefer it because it is long-grain and of premium quality. He added that Thai imported rice costs Naira 75,000-70,000/50 kg bag ($97-$95/50 kg bag), while Indian imported parboiled rice is priced at Naira 60,000-62,000/50 kg bag ($78-$80/50 kg bag). Despite the price gap, people still favor Thai parboiled rice.

Another miller in Nigeria said the government has sealed the Cotonou border, which encourages imports to be conducted directly into Nigeria, along with the payment of import duties.