Heat the vegetable oil in a medium pot over medium heat. Add the fennel and coriander seeds to the oil, and stirring constantly, toast the seeds until light golden in color. Add the rice, and continue stirring, toasting the grains with the seeds. Pour in the coconut milk, water, and sugar, stirring to incorporate, and bring the ingredients to a boil, and then reduce the heat to a simmer, and cover.
Cook the rice for 30 minutes, or until the rice has completely absorbed the cooking liquid and is tender. Fluff the rice with a fork just before serving.