Bangkok, Sept 10 - The benchmark rice price in world number one exporter Thailand rose 2 percent from last week, exporters said on Wednesday, citing strong demand from Japan and the Middle East.
The median price for 100 percent B grade white rice quoted by exporters rose for the second straight week to $735 per tonne, up from last week's $720 per tonne.
It was still well below a record high of $1,080 per tonne marked in April.
"Importers in the Middle East kept buying and there was fresh demand from Japan," one exporter said.
Japan bought 15,000 tonnes of Thai rice in a tender for 28,000 tonnes last week. The remaining 13,000 tonnes was sourced from the United States, traders said.
Japan's Ministry of Agriculture planned to hold a tender for 25,000 tonnes on Sept. 17 under the more flexible simultaneous buy and sell system. Shipments would be made until Dec. 25.
Traders and exporters said Iraq and Dubai were among the active buyers from the Middle East.
"Iraq has not had a tender for months, but we all know it continues to buy rice from its traditional Thai supplier every month," another exporter said.
Traders said Iraq bought up to 50,000 tonnes of 5 percent broken grade white rice from Thailand for October-November shipment.
Iraq, one of Thailand's major rice buyers, has imported 428,870 tonnes of rice so far this year, up 184 percent from 150,602 tonnes in the whole of 2007.
The price of benchmark Thai 100 percent B grade white rice was expected to stay above $700 per tonne through the end of this year, supported by a government buying scheme, traders said.
The government approved plans on Tuesday to buy paddy rice from farmers at 14,000 baht per tonne, equivalent to $700 per tonne of milled rice.
Exporters complained the price was too high as they try to compete against cheaper offerings from rivals India and Vietnam.
Thailand's rice exporters' association said last week it expected 2009 exports to fall below 8.0 million tonnes, compared to a previous forecast to 8.0-8.5 million tonnes.
Thailand exported 9.5 million tonnes in 2007.