Vietnam rice prices plunge to near 12-year low as demand dries up

Vietnamese rice export rates slumped to their lowest in nearly 12 years this week on sluggish demand, while an appreciating rupee helped rates for the Indian variety.

Vietnam's 5% broken rice prices fell to $325 per tonne, their lowest since November 2007, versus last week's $325-$330 range.

The lack of fresh deals, especially due to waning interest from the Philippines, amid expectations that the major buyer could cut down on imports to support local farmers, have squeezed the Vietnamese market, with prices now about 13% lower compared to the beginning of the year.

"Demand remains very weak this week," a trader based in Ho Chi Minh City said.

Meanwhile, only 82,450 tonnes of rice are scheduled to be loaded at Ho Chi Minh City ports during September 1-15, with most shipments bound for West Africa and Philippines, traders said.

Top-exporter India's 5% broken parboiled variety rose to $370-$376 per tonne from $369-$374 a week ago, amid good demand from African nations and a resurgent rupee.

Local paddy supplies are limited and prices are firm, forcing exporters to increase rates, said an exporter based at Kakinada in the southern state of Andhra Pradesh.

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