Asia Rice-Thai drought raises supply jitters, Vietnam rates at over 1-yr high

* Thai rates jump to $470-$495/tonne this week from
$460-$467
* Indian rupee drops to near record low
* Bangladesh could miss 'Boro' production target of 20 mln
tonnes
* Dry season in Thailand could extend through June - govt

By Brijesh Patel
BENGALURU, March 12 (Reuters) - Drought conditions in
Thailand stoked concerns of a supply shortage and lifted rice
export prices to a more than 6-1/2 year high this week, while
strong domestic demand amid a coronavirus outbreak pushed
Vietnamese rates to more than a one-year peak.
Thailand's benchmark 5% broken rice RI-THBKN5-P1 prices
rose to $470-$495 per tonne on Thursday, their highest since
August 2013, versus last week's $460-$467 range.
"Many rice mills are refusing to sell due to uncertainty
over supply during this dry season," a Bangkok-based rice trader
said, echoing the concerns of others.
Many parts of the country's rice growing area have been hit
by drought and traders said higher prices were also denting
overseas demand.
The Thai government has said this year's dry season could
extend beyond the usual period of April through to June.
In Vietnam, rates for 5% broken rice RI-VNBKN5-P1 rose to
$400-$405 on Thursday, their highest since November 2018,
compared with $390-$400 a week earlier.
"Domestic demand has been strong over the past week as
families are rushing to stockpile rice in anticipation of the
further spread of the new coronavirus," a trader based in Ho Chi
Minh City said.
"This massive stockpiling has forced exporters to raise
their prices due to scarce supplies," the trader added.
Vietnam's rice exports in the first two months of this year
rose 31.7% from a year earlier to 928,798 tonnes, according to
government customs data released on Wednesday.
In top exporter India, rice export prices extended their
losing streak due to a depreciation in rupee despite strong
demand from African countries.
India's 5% broken parboiled variety rates RI-INBKN5-P1
edged lower to $363-$367 per tonne this week from last
week's $367-$371.
The Indian rupee INR=D4 was trading near a record low on
Thursday, raising exporters margins from overseas sales.
"Demand has been slowly improving from African countries.
Prices are moderating due to the weak rupee," said B V Krishna
Rao, president of the Rice Exporters Association (REA).
India's rice exports in 2019 fell 18.1 % from a year ago to
their lowest in eight years, government data shows, as demand
from key Asian and African buyers moderated. Meanwhile, Bangladesh could miss its target of 20 million
tonnes for the "Boro" summer variety rice crop this season, as
many farmers who were upset about low prices switched to other
crops, insiders said.
Boro contributes more than half of Bangladesh's typical
annual rice output of around 35 million tonnes.