Rice is a staple food across the world and always stays in high demand. India, Thailand, and Vietnam are the leading exporters of rice. But due to erratic weather in India and high domestic demand, the export prices of rice have increased in the global market. In addition, GOI has also imposed an export duty on rice which makes Indian rice costlier. Due to the severe impact of the Russia-Ukraine war, Thailand and Vietnamese rice prices also touched the ceiling.
The international market for rice, in particular, experienced significant volatility in the initial week of February. As a result, compared to the end of last month, Vietnamese rice export prices rose by US$15 per tonne on February 5.
The price was the highest in recent years for the 5% and 25% broken rice, which were being traded for US$473 and US$453 a tonne, respectively. Though, the export price of rice was still US$20 per tonne less than Thai rice and US$10 less than Pakistani rice.
Major Vietnamese Rice Importers
The Vice President of the Vietnam Food Association, Mr. Do Ha Nam, associated the significant export price rise on global economic and political turmoil, as well as the extended Russia-Ukraine crisis, which has forced a number of nations to boost imports for food reserves.
Many major Vietnamese rice importers, including China, Africa, and the Philippines, are aggressively importing rice as part of their inventories at the moment.
According to Mr. Do Ha Nam, the Philippines market is the largest buyer of Vietnamese rice this year, which is particularly promising, because the government has made the decision to keep the import duty at 35%.
Trung An High-tech Agriculture Jsc has currently signed multiple contracts to provide rice to a number of markets, including the Republic of Korea, Singapore, Malaysia, Australia, Europe, and the United States, from now until the beginning of the second quarter of the year. It intends to transport almost 1,500 containers, totaling over 30,000 tonnes of rice, primarily high-quality and aromatic rice.
Estimate Of Rice Export in 2022-23
According to the General Director of Trung An High-tech Agriculture, Pham Thai Binh, the firm has started post-break production since January 25 in order to efficiently provide commodities to overseas partners.
According to him, the company’s market value of high-quality rice to the European market has risen, fluctuating at US$600 to US$1,250 per tonne, with 100% broken rice also trading at US$468 per tonne.
Likewise, a Loc Troi Group official said that the company has secured contracts to sell 40,000 tonnes of rice to the European market during the year.
As per the growth noticed in the initial days of this year, the representative of the group estimated that the rice exporters would continue to attain profit this year and surpass the export forecast of the rice industry of US$ 3.5 billion in 2022.
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