Indian rice export prices climb to 10-month high: What's behind the rise?

The increase comes at a time when India continues to remain one of the world's biggest rice exporters, making the latest price movement closely watched.Indian rice export prices have climbed to their highest level in nearly 10 months, Reuters reported. The increase comes at a time when India continues to remain one of the world's biggest rice exporters, making the latest price movement closely watched.PRICES TOUCH A 10-MONTH HIGHIndian rice export prices moved higher this week, extending the gains seen over the past few weeks.The country's 5% broken parboiled rice was quoted at $358-$364 per metric tonne, up from $356-$361 last week. Meanwhile, 5% broken white rice was priced at $357-$363 per metric tonne.WHAT'S DRIVING THE INCREASE?The rise in export prices has been supported by higher domestic paddy prices as supplies have tightened. At the same time, traders are keeping a close watch on the new-season crop, with concerns over production adding to the upward pressure on prices. Another factor supporting prices is the gradual improvement in export demand.A New Delhi-based dealer with a global trade house said, "Export demand is gradually picking up, as Indian rice remains competitively priced despite the recent increase in prices."RICE EXPORTS REMAIN STRONG India's rice exports rose 5% during the first half of 2026 compared with the same period last year.Higher shipments of non-basmati rice helped offset a decline in basmati exports, which were affected after the US-Israel war involving Iran disrupted trade with key Gulf markets.WHAT'S HAPPENING IN NEIGHBOURING COUNTRIES?Rice prices have also remained firm in Bangladesh, although for a different reason.According to traders, domestic rice prices rose again this week after two rounds of flooding damaged rice crops across the country, particularly affecting finer varieties.In Vietnam, 5% broken rice was offered at $430-$450 per tonne, largely unchanged from the previous week.Traders said demand remains weak as the Philippines, one of Vietnam's biggest buyers, has tightened controls on rice imports. However, exporters are not reducing prices because their profit margins are already very low.One trader in Ho Chi Minh City said the Philippines' decision to protect domestic rice production has also encouraged Vietnam to focus more on producing higher-quality rice and expanding into new export markets.In Thailand, 5% broken rice was quoted at $450 per tonne, slightly lower than the previous week's range of $450-$460 per tonne. Traders said demand remained subdued, while supplies were broadly unchanged. Market participants are now waiting to see how the next harvest turns out.- EndsPublished By: Jasmine anandPublished On: Jul 30, 2026 18:23 IST