RPT-Asia Rice-Vietnam rates climb to over 1-year high on strong demand

(Repeats Feb. 20 story with no changes to text)
* Vietnamese rates jump to $380/tonne from $355-$360
* Virus has no impact on Vietnam exports to China - member
* Bangladesh mulls ban on common rice exports - official
* In Thailand, concerns over supply persist due to drought

By Brijesh Patel
BENGALURU, Feb 20 (Reuters) - Vietnam's rice export prices
surged to a more than one-year high this week on strong demand
from the Philippines and Malaysia, while rates for the Indian
variety held steady at an over four- month peak.
Rates for Vietnam's benchmark 5% broken rice RI-VNBKN5-P1
jumped to $380 a tonne — the highest since December 2018. Last
week, prices hovered between $355 and $360 a tonne.
"We have received more orders from the Philippines and
Malaysia recently, while supplies remain low as the
winter-spring harvest has not yet peaked," a trader based in Ho
Chi Minh City said.
Earlier this week, the Vietnam Food Association's vice
chairman, Do Ha Nam, said the coronavirus epidemic in China had
no impact on shipments of Vietnamese rice to China. Vietnam expects to export 6.75 million tonnes of rice this
year, up 6% from last year, Nam said.
"Prices of Vietnamese rice have room to even increase
further as they remain significantly lower than in other
rice-producing countries," another trader said.
In top exporter India, prices for the 5% broken parboiled
variety RI-INBKN5-P1 were unchanged from last week at
$371-$376 per tonne - their highest since late September.
"Subdued demand from Benin and South Africa is keeping the
volumes low," said Nitin Gupta, vice president for Olam India's
rice business.
Despite weak exports, local paddy rice prices were firm due
to purchases by the state-run Food Corporation of India at the
government-mandated rate, Gupta added.
Meanwhile, Bangladesh could impose a ban on exports of
common rice amid a spike in domestic prices, a commerce ministry
official said.
Earlier this month, the government offered traders a cash
subsidy worth 15% of rice exports in a bid to compete with
rivals and protect farmers struggling with low prices.

The cash incentives will still be applicable for aromatic
rice exports, the official said.
Thailand's benchmark 5-percent broken rice RI-THBKN5-P1
was offered at $430-$445 a tonne, compared with $425-$447 last
week. Traders attributed the price change to a fluctuation in
the exchange rate.
"Demand is very quiet and concerns over supply persist due
to the drought," a Bangkok-based trader said.
The dry season started in November and usually lasts through
April, although this year authorities say it could persist into
June, curbing rice production in many areas.
"Rice prices remain high compared to competitors and the
little demand we had is mostly domestic as some are buying stock
fearing shortage from the drought," another Bangkok-based rice
trader said.