Rising ocean freights imposes a challenge for rice exporters
Indian rice traders worry over surging freight rates.
Sea freights for containers have begun increasing once again after remaining stable for the last quarter of 2021, increasing 10 percent in the 1st week of January 2022 resulting in new uncertainties for agricultural commodity traders. One rice exporter said that the waiting time of deliveries at ports has also soared to more than a month from 15 days. Indian non-basmati rice in the international market witnessed a bullish turn over the course of the week. The strengthening of the Rupee combined with trade aversion fears has led to this bullish sentiment. Rice export movements have remained negligible with challenges to only complete previously closed agreements. Rice exporters have also stated that correctional actions may seep in post-elections which are due in February 2022 across major states of India.
Sri Lanka’s cabinet of ministers has authorized the rice import of 300,000 MTS to boost the local supply due to rice harvest shortfalls expected owing to the use of organic fertilizer. The Minister of Trade had been given the approval to import 200,000 MTS of parboiled rice (Nadu type) and 100,000 MTS of GR11 short-grain rice.
Vietnam's 5 percent broken white rice export prices were unchanged at $395-$400 per MTS, its lowest level since August 26, 2021. One rice trader said that the rice export movement is warming up again after the holidays. Another rice trader stated that local rice prices are increasing due to limited supplies. Many rice traders are boosting their purchases from farmers to fulfill the export deals they have signed previously.
In Thailand, 5 percent broken rice export prices have increased to $390-$402 per MTS, its highest since mid-October 2021 compared to the previous week’s $387-$396 per MTS. One rice exporter stated that they anticipate more requirements from the international rice market this new year 2022 and that some rice traders have begun to stock up supplies as they look forward to great demand.
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