India 100% broken WR prices rise 10-month high on domestic ethanol demand

India's 100% broken WR prices jumped to a 10-month high Aug. 11, according to data from Platts, part of S&P Global Energy, amid rising demand from the country's ethanol industry and tight supply.

Platts assessed 100% broken WR at $309/metric ton FOB Kakinada Aug. 11, up $9/mt week over week, and the highest since Oct. 13, 2025, when it was assessed at $304/mt FOB Kakinada.

Offers for 100% broken WR were in the range of $315-$325/mt FOB Kakinada and $308-$310/mt FOB Kandla in the week to Aug. 11, with sellers' offers rising constantly from $285-$287/mt FOB Kakinada on July 10.

Domestic ethanol demand pushes prices

According to the current open market sale scheme tender policy released July 16 and July 2, the government has allocated 7.2 million mt rice for ESY 2025-2026 (November-October) to the ethanol industry at 23,200 rupees/mt.

However, the OMSS tenders supply has not yet hit the market, according to a Karnataka-based ethanol market participant.

The availability of 100% broken WR is low in the market, as OMSS tenders to ethanol market participants have yet to be released. There is also no confirmation from the government on when they will be released, the Karnataka-based ethanol participant said.

"100% broken rejection rice bought today was at 27,200 rupees/mt for ethanol plant delivery, while maize is trading at 26,500 rupees/mt plant delivered," the above participant said. "If the supply doesn't increase from the government's side, the broken prices potentially could continue rising in the next 3-4 months."

International demand for broken was seen at $300/mt FOB for Africa quality, according to market participants.

A Delhi-based trader said that buyers are requesting 100% broken at $300/mt FOB, but it is not possible to trade due to low availability and high local prices.

Chinese demand also remains weak, according to India-based exporters.

A Mumbai-based exporter said China has suspended licenses of at least seven Indian exporters amid quality issues.

"[100% broken WR] availability is very poor. Ethanol companies are buying," the same Mumbai-based exporter said.

India's rice exports are projected at 24 million mt for MY 2026-2027 (October-September), up 500,000 mt year over year, while production is expected at 150.3 million mt, down 3.7 million mt year over year, according to S&P Global Energy CERA.