Thai prices hit over two-year low, Indian rates steady at 21-month low

*

Thai rates fall to $405 from $405-$408 last week

*

India rates unchanged at $403-$410 per ton

*

Bangladesh rice prices stay high despite imports, stronger reserves

By Daksh Grover

March 20 (Reuters) - Thai rice export prices fell to a more than two-year low this week, weighed down by weak demand and rising supplies, while India's rice export prices held steady near a 21-month low.

Thailand's 5% broken rice dropped to $405 per metric ton, hitting its lowest level since late Oct. 2022 and touching the lower end of last week's quoted range of $405 to $408 per metric ton.

Demand has been very quiet and it looks like it will be like this for the next 2-3 months, a Bangkok-trader said.

"It's very worrying, because India and Vietnamese (rice) prices are very low. Regular customers are buying as needed. There is an oversupply in the market," said the trader.

India's 5% broken parboiled variety was quoted at $403-$410 per metric ton, unchanged from last week.

"Pakistan and Vietnam are aggressively selling white rice, which is even affecting the prices of parboiled rice," said a Kolkata-based dealer with a global trade house.

India earlier this month allowed the export of 100% broken rice, which had been banned since September 2022.

Vietnam's 5% broken rice was offered at $394 per metric ton on Thursday, compared with last week's $392 per ton, according to the Vietnam Food Association.

"Activities remain tepid on soft demand," a trader based in Ho Chi Minh City said.

Vietnam's trade minister on Wednesday directed relevant agencies to speed up promotion efforts in the Philippines and China while actively looking for new markets.

Meanwhile, domestic rice prices in Bangladesh remain high despite efforts to increase imports and strengthen reserves, adding pressure on consumers.

While the government is procuring rice from Vietnam, Myanmar, and Pakistan through government-to-government deals and international tenders, private traders have largely stayed away, fearing a price drop in the local market. (Reporting by Daksh Grover in Bengaluru, Rajendra Jadhav in Mumbai, Chayut Setboonsarng in Bangkok, Phuong Nguyen in Hanoi and Ruma Paul in Bangladesh; Editing by Shreya Biswas)