Bangkok, Thailand – The price of Thai export rice has continued its decline this week, hovering near a nine-year low. This drop is primarily attributed to abundant supply from the ongoing harvest season and subdued international demand.
On October 2nd, the benchmark Thai 5% broken rice was quoted at $345 per metric ton, marking the lowest level since November 2016. This represents a decrease from the $350/ton price reported the previous week.
Key Drivers of the Price Slump
Traders in Bangkok point to unchanging demand as a key factor pressuring prices. One merchant noted that orders for Thai rice are predominantly in small quantities and mostly from regular, established buyers. The other major factor is the plentiful domestic supply as the country is currently in the middle of a harvest period.
Despite the recent price softening, a Thai Commerce Ministry official stated earlier in the week that Thailand is maintaining its export target of 7.5 million metric tons for the year.
Regional Price Comparison
While Thai prices are sinking, the market movement is mixed in other major rice-exporting nations:
- India: The price of parboiled 5% broken rice saw a slight increase this week, quoted at $358–$365/ton, up from $354–$362/ton the previous week. White 5% broken rice was priced at $369–$375/ton. A New Delhi trader observed that demand was “somewhat better” than the previous week, suggesting buyers might feel prices have bottomed out. Indian rice prices had previously hit a three-year low in mid-September 2025 due to weak export demand and rising supplies.
- Vietnam: Prices for Vietnamese 5% broken rice remained stable on October 2nd, holding steady at $440–$465/ton, according to the Vietnam Food Association. However, a Ho Chi Minh City-based trader reported that trading activity remains slow amid weak global demand.
Headwinds from Key Importer
A significant headwind for the rice market overall is the decision by the Philippines, one of the world’s largest rice importers, to extend its temporary suspension of rice imports for another 60 days. Traders report that this move is negatively impacting rice prices across the region by suppressing overall import appetite.
How might the extension of the import ban by the Philippines affect the pricing strategies of Thai and Vietnamese rice exporters in the coming weeks?
