The largest rice exporter in the world is India, followed by Vietnam and Thailand. According to the Ministry of Industry and Trade, Vietnam’s 5% broken rice has been the most expensive in the world since August of the previous year, surpassing competitors Thailand and India.
Rice Pricing
The average price of rice in Vietnam during the first two months of the year was more than $519 per ton. Since August of the previous year, Vietnam’s rice has cost $15–27 more than Thai prices and $40–50 more than Indian prices.
Vietnamese rice export volumes fell 20.9% year over year to 400,000 tons in January, but prices increased 7% during that time.
Vietnam’s Rice Exports
Due to India’s ban on the export of broken rice and 20% tax on white rice, buyers will increasingly turn to Vietnam for their rice needs. This year, favorable conditions for Rice Exporters in Vietnam are anticipated to return as demand from Indonesia and Bangladesh has resumed. Vietnam exported 7.1 million tons of rice last year, a 10-year high. This year, the nation intends to export 6.6 million tons of rice, with 4.12 million tons due by the end of the first half of the year.
The trade ministry is collaborating with the EU to increase the import of fragrant rice from Vietnam.
Challenges Being Faced
However, the Ministry of Industry and Trade is worried that the industry will face difficulties due to the lack of market diversification for exports and reliance on China and the Philippines (the latter of which is the largest consumer of Vietnamese rice, accounting for 45% of exports). Additionally, maintaining market share may be difficult due to Pakistan’s cheap rice.
Since the start of the Russia-Ukraine conflict, input costs have been increasing and costs of logistics have remained high.
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