Roshan Abraham

(Reuters) – The Indian rice export prices rose on increased demand and dwindling supply this week, while Vietnamese rates rose.

India is a top exporter of 5% broken parboiled varieties. The price was $363-367 per ton, an increase from the $361-$365 last week. Prices were also supported by the appreciation in rupee.

Nitin Gopta, Vice President of Olam India’s Rice business said that there is strong demand for rice from Asia and Africa.

A weaker rupee can reduce the profit margin for overseas sellers.

Domestic prices in Bangladesh were high, despite officials blaming hoarding. They warned that strict measures would be taken against those who have accumulated the staple to increase their windfall profits.

The price of Vietnam’s 5% boiled rice, which was previously offered for $415 per ton, has risen to $420 on Thursday.

According to a Ho Chi Minh City trader, “Prices are rising on tight supplies because the winter-spring harvest is finished.” He added that the supply of supplies will increase following the harvest in the summer-autumn in late May.

Vietnam’s rice exports rose by 4.4% in four months to 2.05million tonnes in 2011, while rice export revenue declined by 6% in that period.

The prices for Thailand’s 5% rice were $435-$445 per ton on Thursday. That is up from last week’s $432-435.

A trader based in Bangkok said that there was more rice demand, and many cargo ships were sent to Iraq. This drove up the prices.

According to traders, Middle Eastern clients making ships available have reduced the freight cost burden that was a problem for exporters in the past.

Another trader stated that the amount of rice on the market would decrease when Thailand moves towards rainy season.