Asia Rice-Top hubs see muted activity; fresh supply to weigh on Vietnam rates

* Bangladesh lifts ban on exports after 10 years
* Quality of rice from new harvest in Vietnam expected to be
lower
* Demand for Indian variety subdued
* Thai rates barely changed at $385-$402 a tonne

By Diptendu Lahiri
BENGALURU, May 30 (Reuters) - Export prices for rice were
little changed in major hubs in Asia amid few new deals, with
rates for the Vietnamese variety expected to fall further in the
coming week as the ongoing harvest picks up pace, boosting
domestic stocks.
Rates for Vietnam's 5 percent broken rice RI-VNBKN5-P1
were $350 a tonne on Thursday, flat from last week.
"Prices will likely fall further over the coming weeks as
the summer-autumn harvest is picking up pace," a trader based in
Ho chi Minh City said, adding the harvest will peak mid-June.
However, the quality of rice from the new harvest is
expected to be lower than that of the winter-spring harvest due
to adverse weather and crop diseases, another trader said.
The government estimated Vietnam's rice exports in the
January-May period fell 5.3% from a year earlier. Meanwhile, Bangladesh, traditionally the world's fourth
biggest rice producer, lifted a long-standing ban on exports on
Thursday. Bangladesh aims to sell as much as 1.5 million tonnes, the
country's agriculture minister Abdur Razzak said, in a move
aimed at supporting farmers amid a drastic drop in domestic
prices.
Last week, Bangladesh raised rice import duty to 55% from
28% amid widespread protests by growers.
Bangladesh had banned all rice exports in 2009. The country
now has a surplus of 2-2.5 million tonnes. Bangladesh's neighbour and the world's top rice exporter
India saw subdued demand for its benchmark variety from buyers
in Africa.
Prices of India's 5 percent broken rice RI-INBKN5-P1 were
unchanged from last week at $364-$367 per tonne.
"Export demand is weak but we couldn't cut prices due to the
rising rupee," Ashwin Shah, director at Shah Nanji Nagsi Exports
Pvt. Ltd, an exporter based in Nagpur in central India.
A strong rupee reduces exporters' margin from overseas
sales.
Thailand's benchmark 5-percent broken rice RI-THBKN5-P1
prices were largely unchanged at $385-$402 a tonne on Thursday,
free on board Bangkok (FOB), from $385-$400 last week, as it
faces stiff competition from other exporters.
There are no major deals in sight, traders said, attributing
slight moves in prices to currency fluctuations.
"Prices could not go up because other exporters sell rice
cheaper than ours, and the price could not go down because the
baht is too strong," a Bangkok-based rice trader said.
The Thai Commerce Ministry projected the country's rice
exports at 10 million tonnes this year, versus last year's 11
million tonnes, while the Rice Exporters Association pegged 2019
exports at 9.5 million tonnes.