India's surprise move causes Asian rice market to "fall" sharply

India shakes Asian rice market. (Source: Bloomberg)

According to records, the latest move by the South Asian country has caused rice prices in many countries to fall to their lowest level in more than a year.

Specifically, India lifted the export tax on parboiled rice on October 22 and removed the floor price of $490 per tonne for non-basmati white rice on October 23.

Immediately, the price of 5% broken parboiled rice of this country dropped to 450-484 USD/ton, the lowest level since August 2023. 5% broken white rice also only dropped to 460-490 USD/ton.

The impact of New Delhi's decision quickly spread to other markets in the region.

In Vietnam, the price of 5% broken rice fell from $537 per ton to $532 per ton on October 24, the lowest since July 2023. Thailand also saw a similar decline, with the price of 5% broken rice falling from $525 to $510 per ton.

Meanwhile, Bangladesh has decided to cut rice import duty by 37% after floods severely damaged crops, cutting output by 1.1 million tonnes.

Specifically, customs tax is reduced from 25% to 15%, administrative tax from 25% to 5%, and the 5% advance tax rate is abolished.