Demand from China for Indian 100% broken WR slows down: traders

Chinese demand for Indian 100% broken white rice has weakened, leading to slight pressure on prices, market sources told Platts this week.

Platts, part of S&P Global Energy, assessed India 100% broken WR at $336/mt FOB July 17, $2/mt down on the week, but $17/mt up on the month.

"Most [Chinese] traders have already exhausted their rice purchase quotas, and currently only a few major buyers remain active. While shipments of the remaining quantities are ongoing, the volumes are relatively low," according to Mukesh Jain, president of the Rice Exporters Association Chhattisgarh.

"Market prices in China have declined, and there are logistical challenges in dispatching cargo from Vizag port. Even with offers of high-quality Swarna 5% WR at $380–$385 per metric ton FOB from Kolkata port, buyers are still hesitant to close deals," Jain added.

India has exported 55,827 mt of rice to China in the months of April and May, while it exported just 1,067 mt of rice in the same period of last year, due to a ban on exports of 100% broken material, according to India's Agricultural and Processed Food Products Export Development Authority data.

With a slowdown in Chinese demand for brokens this year, there has been slight pressure on prices, with good availability of brokens in Madhya Pradesh and the west coast.

Chinese demand remained sluggish for more competitive Myanmar rice.

Platts assessed Myanmar B1 and B2 broken rice at a $57/mt discount to Indian brokers as of July 17.

A Yangon-based exporter said that "there's not much demand from China; they have a lower import quota and are not satisfied with the current prices. They want the prices to be even lower to make purchases. I've heard they will receive a new quota around August, but I'm not too sure because it depends on their government policy."

Additionally, sources in Myanmar also said that China has recently started buying hard-type broken rice from Myanmar with high amylose content for rice noodle preparations.

"For now, China demand is not at the level it was last 2-3 months ago. May depend on the lowering quota for import and also less availability of high amylose level rice and broken rice," another Yangon-based exporter said.

China purchases 100% brokens from India for its feed market, while Swarna 5% WR is usually purchased for noodle-making, according to Indian sellers.

Amid the availability of Swarna rice in Chhattisgarh and Kolkata, demand for Swarna 5% WR was heard from China, albeit at a slow level, market sources added.

India is expected to export 23 million mt of rice in MY 2025-26 (October-September), 6% lower year on year, while the country's rice production is estimated at 148 million mt for the current marketing year, down by 1 million mt, according to S&P Global Energy data.