Export prices of Indian rice rose further this week, supported by strong demand and concerns that the world’s top exporter of the grain could restrict shipments. 

India’s 5 per cent broken parboiled rice was sold at prices of $357 to $362 per tonne this week, compared with $355 to $360 in the previous week. 

“There’s huge demand for 100 per cent broken rice as well as for the 5 per cent broken rice. Traders are speculating India might put restrictions on the exports,” said an exporter based in Kakinada in Andhra Pradesh.

India’s surprise ban on wheat exports has prompted rice traders to increase purchases and place unusual orders for longer-dated deliveries.

However, trade and government sources have said that the country does not plan to curb exports of the grain as there are sufficient stocks and local rates are lower than State-set support prices. 

Neighbouring Bangladesh will, meanwhile, allow private traders to import rice as domestic prices have jumped more than 5 per cent in a week despite good crop and reserves. The government is also cracking down on stockpiling.

The world’s third-biggest rice producer, Bangladesh, often imports the grain to ease shortages after floods and droughts. 

Thailand’s benchmark 5 per cent broken rice was quoted at $450 to $460 per tonne versus $455 to $460 last week, with the small change attributed to currency fluctuations.