India Rice Prices Surge to 3-Month High Amid Global Demand Concerns

Rising Domestic Prices Drive Export Costs

India's rice export prices have climbed to their highest level in three months, with parboiled rice (5% broken) now priced between $355-$360 per ton. This increase is primarily attributed to the rising cost of domestic paddy, which has put upward pressure on export prices. The current prices are the highest since October 2, 2025, reflecting the strengthening of domestic grain prices.

Global Market Implications

Despite the price increase, the global rice market remains cautious due to concerns about weak international demand. The rice markets in Thailand and Vietnam are particularly affected by these concerns, as they compete with Indian rice in the global market. The current situation highlights the delicate balance between rising production costs and sluggish global demand in the rice trade.

Market Outlook

The future trajectory of India's rice exports will depend on how domestic paddy prices evolve and how global demand responds to the current price levels. Any further increase in domestic prices could lead to higher export prices, potentially affecting India's competitiveness in the global market.