May 2024 (243) World rice prices show moderate increases

In May, world rice prices rose slightly by 1.3%, driven by demand from Southeast Asia and Africa. In Thailand, more significant increases were recorded following robust demand from Indonesia and the strengthening of the baht. By contrast, Vietnamese prices increases were more limited, while Pakistani’s prices remained relatively stable. In India, the price of parboiled rice decreased due to a more abundant supply from the new Rabi harvest. By the end of May, world prices tended to stabilize due to a mitigation of import demand and an increase in export supply. However, prices are expected to continue showing some volatility as the market anticipates new offers in the coming weeks. Additionally, operators are betting on the early return of India to the export market. Indian government officials indicate that a favorable decision to lift the ban could be made quickly. This comeback, combined with the arrival of major Asian harvests from September and extending until early 2025, should steer global prices downward for much of the second half of the year. In May, the OSIRIZ/InfoArroz (IPO) index increased by 4.4 points to 235.0 points (base 100=January 2000) from 331.6 points in April. Early June, the IPO index shows some stability at 338 points.