Rise in Bangladesh tender prices signals firmness in global rice market

• Indian parboiled rice prices remain sharply discounted versus Pakistan despite higher risk profile
• Bangladesh accelerates large-scale procurement as part of strategic stock-building

India-based Bagadiya Brothers Pvt Ltd was awarded a tender for the supply of 50,000 tonnes (+5%) of non-basmati parboiled rice to Bangladesh, under the latest tender which closed on 22 December, at $359.77/t, higher by about $4/t compared to the previous round. The results of the tender, which was issued on 8 December, indicate emerging firmness in global rice prices, according to trade sources, and also establish a benchmark for Indian-origin non-basmati parboiled rice in the export market.

Tender price trajectory shows soft-to-firm transition

Bangladesh’s sequential rice tenders from October through mid-December reflect a gradual but clear firming trend after an initial softening phase. As shown in the accompanying table, tender prices peaked at $359.77/tonne on 6 October, awarded to Bagadiya Brothers (India), before easing through November as increased participation and ample Indian availability exerted downward pressure. Prices slipped steadily from the $356–357/tonne range in early November to a cycle low of $351.11–351.49/tonne in early December, when Indian-origin offers dominated awards across multiple packages.

However, the most recent tender round marks a reversal of this decline. The 15 December award at $355.77/tonne to Pattabhi Agro Foods (India), followed by the latest Package-10 award at $359.77/tonne, represents a $4/tonne rebound from the previous round, effectively returning prices to early-October levels. Each tender in the sequence covered 50,000 tonnes, underscoring the consistency of Bangladesh’s buying program and the reliability of these prices as market benchmarks.

Strategic stock build under way

Bangladesh’s procurement drive appears geared toward strategic stock accumulation, traders said. One 50,000-tonne parcel is due for delivery by 4 January 2026, with additional packages expected, taking total planned purchases to about 600,000 tonnes of parboiled rice and 100,000 tonnes of white rice.

Market participants note that while alternative origins may struggle to replace Indian volumes at short notice, continued price undercutting could have longer-term implications for Indian origin competitiveness.