Bangladeshi rice traders demanded cash incentives for rice exports as the country has been unable to secure any deals since a long-standing ban was lifted in May, reports Reuters.
“At present, we’re not in a position to compete with India or Thailand for parboiled rice,” a Dhaka-based trader said.
The trader said, “It’s almost impossible to export any rice unless the government provides at least 20 per cent cash subsidy on exports.”
In global market, export prices of rice from Vietnam fell this week as the country struggled to find new buyers amid waning demand from China.
Prices for Vietnam’s 5.0 per cent broken rice fell to $335-$345 a tonne on Thursday from $340-$350 last week.
Exports to China in the first seven months of this year fell 65.7 per cent from the corresponding period last year, to 318,100 tonnes, Vietnamese customs data showed.
Meanwhile, Thailand’s benchmark 5.0 per cent broken rice prices narrowed to $415-$425 a tonne on Thursday from $406-$425 last week.
“Domestic prices are up due to fears over possible shortage of rice because of the drought,” a Bangkok based trader said.
Top exporter India saw prices of its 5.0 per cent broken parboiled variety ease to about $374-$377 per tonne from last week’s $377-$381.
“Africa market is again active now, said Nitin Gupta, vice president for Olam India’s rice business.
“Due to the currency depreciation in the last couple of days, prices have corrected.”
India’s rice exports in April-June dived 28.2 per cent from a year ago to 2.35 million tonnes, a government body said on Monday, due to subdued demand for non-basmati rice from Africa.