Indian rice export prices have climbed to their highest level in ten months, driven by rising domestic paddy costs, tightening supplies, and worries over the upcoming harvest. The price surge comes as competitive pricing continues to attract buyers despite the increases. Main Developments India's 5% broken parboiled rice was quoted at $358 to $364 per metric ton this week, up from $356 to $361 last week. The 5% broken white rice variety was priced at $357 to $363. Export demand is gradually picking up, according to a New Delhi-based dealer, as Indian rice remains competitively priced despite the recent gains. Vietnam's 5% broken rice held steady at $430 to $450 per ton on Thursday, unchanged from the previous week. A Ho Chi Minh City trader noted that demand remains weak, particularly from top buyer the Philippines, which has tightened import controls to protect its domestic production. However, exporters are reluctant to lower prices due to already thin profit margins. Read also: 4 Key Reasons 13 Charged in India's NEET Exam Leak Scandal Background India's rice exports rose 5% in the first half of 2026 compared to the same period last year, driven by higher shipments of non-basmati varieties. This offset a decline in basmati exports after the U.S.-Israeli war on Iran disrupted trade with key Gulf markets. Meanwhile, domestic rice prices in Bangladesh rose again this week, particularly for fine varieties, after two spells of flooding damaged crops across the country. In Thailand, 5% broken rice was quoted at $450 per ton this week, down from $450 to $460 last week. A Bangkok-based trader said demand remained subdued while supply conditions were largely unchanged, with markets awaiting the next harvest's yield. Why It Matters The price increases in India, the world's largest rice exporter, could affect global food inflation and import costs for countries reliant on Asian rice. The Philippines' import restrictions are pushing Vietnam to accelerate its shift toward higher-quality rice and diversify its export markets, reshaping trade dynamics in the region. Bangladesh's flood damage underscores the vulnerability of rice production to extreme weather events. What's Next Markets are closely watching the yield of Thailand's upcoming harvest, which could influence supply conditions. Vietnam's exporters face pressure to adapt to the Philippines' policy changes while maintaining profitability. India's export trajectory will depend on how domestic paddy prices evolve as the new-season crop develops.