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Home>>Business>>Indian rice export prices hit 10 month high: What is driving sharp rise and how it could impact global markets
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Indian rice export prices hit 10 month high: What is driving sharp rise and how it could impact global markets

international media news
August 3, 2026 9 Views0

India’s rice export prices have climbed to their highest level in nearly 10 months, even as global trade continues to face disruptions due to geopolitical tensions in West Asia. According to the report by Reuters, stronger domestic paddy prices, tightening supplies and a gradual recovery in overseas demand have pushed export rates higher in recent weeks. India is the world’s largest rice exporter, making its price movements closely watched by global buyers. Demand is also showing signs of recovery, despite continued uncertainty in key export markets.

Rice export prices from India continued their upward trend this week. The price of 5 percent broken parboiled rice increased to USD 358 to USD 364 per metric tonne from USD 356 to USD 361 a week earlier. Meanwhile, 5 percent broken white rice was quoted at USD 357 to USD 363 per metric tonne, reflecting firm market conditions.

The main reason behind the increase is the rise in domestic paddy prices as available supplies have tightened. Traders are also closely monitoring the upcoming harvest, with concerns over crop production supporting higher prices. The combination of tighter supply and uncertainty over the new season has added upward pressure to export rates. At the same time, export demand has started improving.  A Delhi based dealer associated with a global trading house told Reuters that overseas demand is gradually picking up because Indian rice continues to remain competitively priced despite the recent increase.

India’s rice exports increased by 5 percent during the first half of 2026 compared with the same period last year. The growth was largely driven by higher shipments of non basmati rice, which helped compensate for lower basmati exports. Basmati rice exports faced pressure after the conflict involving Israel, Iran and the United States disrupted trade with several key Gulf markets, affecting demand from the region.

Unlike India, rice prices in Bangladesh have risen because of weather related disruptions. Traders said two rounds of flooding damaged rice crops, particularly finer varieties, leading to another increase in domestic rice prices this week.

Vietnam’s 5 percent broken rice was quoted at USD 430 to USD 450 per tonne, almost unchanged from the previous week. Traders said demand remains weak as the Philippines, one of Vietnam’s largest buyers, has tightened rice import controls. However, exporters have avoided cutting prices because profit margins are already under pressure.

 

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