West African rice market adjusts to price drops after India ends export duty

Published 2024년 10월 30일

Tridge summary

West African rice buyers are facing price drops in the region following India's removal of a 10% export duty on parboiled rice, as reported by Platts. The removal has led to the lowest parboiled rice prices in 11 months, with anticipation of further decreases. Regional markets, particularly Benin, Togo, Ivory Coast, and Senegal, are adjusting to increased competition from India, as well as their own reliance on rice imports. Nigeria, with its high demand for parboiled rice and concerns about food security and economic stability due to high food inflation, has suspended duties on certain imports to address the issue. Meanwhile, Nigeria's rice yield has seen a significant increase since 2014, with efforts to enhance local production to meet the country's needs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

West African rice buyers are adjusting to India’s recent removal of its 10% export duty on parboiled rice, which has contributed to price drops in the region. Platts, part of S&P Global Commodity Insights, assessed parboiled 5% STX CFR Cotonou rice at $535/mt on Oct. 25, its lowest level in 11 months and down $25 from Oct. 22 when India lifted the export duty. This coincides with falls in India’s export market price, with parboiled Oct. 25 assessed down $38/mt since Oct. 22. West African market participants anticipate a continued downward trend in parboiled rice prices with the removal of India’s export duty. As prices decrease, buyers are looking to sell their current stocks. “It’s all about risk booking,” said a Benin-based buyer, emphasizing the cautious approach many are taking in light of the recent fluctuations. A Benin-based importer agreed. “The destination market has yet to fully adjust to recent price changes in origin markets,” he said. Concerns about potential further ...

Source: Hellenic Shipping News