- Tight supply, African demand lift Indian rice prices
- Vietnam, Thailand prices rise amid El Nino concerns
Asian rice export prices increased w-o-w on 14 August 2026, with Indian offers rising to their highest level in nearly a year, supported by tight supplies, concerns over the new-season harvest, and steady demand from African buyers. Similarly, Vietnamese prices increased for a third consecutive week, while Thai prices also firmed, both due to supply concerns over El Nino.
India rice prices rise on stable demand, tight supply
India’s 5% broken white rice was priced at $359-364/tonne (t) FOB up from $356-361/t FOB last week. Stable demand from African markets, including Benin, provided support to Indian rice prices. The price increase comes as market participants remain concerned about tight supplies and the outlook for the new-season harvest. India’s rice exports rose 5% y-o-y during the first half of 2026, with higher shipments of non-basmati rice more than offsetting the decline in basmati exports. The decline in basmati exports was linked to disruptions in trade with key Gulf markets following the US-Israeli war on Iran.
Vietnam prices rise for third week
Vietnam’s 5% broken rice was offered at $435-455/t FOB, compared with $430-450/t FOB a week earlier. Traders said heat waves in several parts of the world have increased concerns about the potential impact of El Nino on global food supplies, including rice. The Vietnam Food Association has also proposed introducing floor prices for fragrant rice exports and fresh paddy in the domestic market to protect producers and exporters. However, the timing of implementation remains unclear. Meanwhile, Bangladesh has approved the import of 100,000 t of parboiled rice from Vietnam under a government-to-government arrangement to ease high domestic rice prices. The rice will be procured from the Vietnam Southern Food Corporation at $416/t FOB.
Thailand rice prices also firm
Thailand’s 5% broken rice was quoted at $450-455/t FOB, compared with $435-455/t FOB last week. Demand from Malaysia and the Philippines has increased as the two countries step up imports amid concerns over the impact of El Nino. Thailand could see a potential 1.5-mnt decline in paddy output this year, while the country is expected to export around 7 mnt of rice in 2026.
Outlook
Rice prices are expected to remain firm in the near term, supported by tight supplies, weather-related concerns and continued import demand. Importers may step up stockpiling to secure supplies amid uncertainty over production and weather conditions, which could provide further support to prices. Meanwhile, new-crop arrivals, production prospects and buying activity in key markets will remain crucial for the price direction ahead.
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