Domestic and export prices continued to increase by 3-5 percent in anticipation of an additional Philippine tender to buy 600,000 tons of 25% grade white rice on December 1, 2009 for February – May, 2010 delivery. The Philippines had just finalized a tender on November 6, 2009 for 250,000 tons of 25% grade white rice of Vietnamese and Thai origin at $470-480/MT C&F. Thai exporters expect that India will likely need to import 1.0 – 3.0 million tons of rice. These unusual imports are results from crop failures due to typhoon and drought damage.
Parboiled rice prices also increased $20-30/MT from the previous week. Exporters are currently fulfilling pending shipments of 200,000 tons to African countries, mostly to Nigeria. The shipments are scheduled to arrive before mid-December, 2009.
Presently, domestic prices have increased above benchmark prices for the first time since the implementation of the insurance program took effect on October 1. Farmers selling paddy in this period will receive higher income than the established insurance prices. This week's price increases are the result of additional government measures implemented last week to stabilize domestic prices, which are the direct purchase of 2.0 million tons of white rice and on-farm mortgage of 2.0 million tons of fragrant rice at benchmark prices.
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