Rice Traders Of Vietnam Asked To Keep A Close Watch On Rice Market As Indonesia Aims To Import 2 Million Tonnes Of Rice This Year
Located on the eastern edge of mainland Southeast Asia, Vietnam is one of the top three leading rice exporters of the world. It exports rice to more than 150 countries and territories globally and shares 15 per cent of the global rice trade. China, the Philippines and Indonesia are some of the major export destination in Asia for Vietnamese rice and any policies, moves and market developments in these major markets partly affect Vietnamese rice export.
Owing to this, the ministry has urged the rice exporters and traders of Vietnam to closely monitor and analyze the international market especially since Indonesian government has decided to import two million tonnes of rice from Vietnam this year for meeting domestic needs.
Indonesia’s Rice Import Plans
Indonesia is one of the major markets for Vietnamese rice and President Joko Widodo’s decision to import two million tonnes of rice from Vietnam in 2023 to double its reserve, stabilize rice prices and ensure food security has provided rice exporters of Vietnam an unique opportunity to boost exports into Indonesian market.
Vietnam’s Ministry Of Industry And Trade’s Statements
In a written notice published on its website, Vietnam’s Ministry of Industry and Trade said that Indonesia faced various difficulties in purchasing rice for the national reserve. The country was forced to import rice due to scarcity of domestic supply caused by lower-than-expected output, inaccurate statistics on plantation and inappropriate purchasing mechanism set by the state.
The ministry urged Vietnam’s rice companies to benefit from the situation, increase promotion and boost their rice exports. The ministry also asked Vietnam’s Rice Exporters, particularly those supplying rice to Indonesia to actively work with Perum Bulog, the state logistics agency who is in charge of basic foodstuffs.
The Bottom Line
Indonesia’s plan to import 2 million tonnes of rice from Vietnam this year has been heartily welcomed by Vietnamese rice exporters and the Ministry of Industry and Trade has urged all the rice exporters to keep a close eye on the situation and capitalize on the opportunity to grow their business and boost their revenue.
The Import and Export Department of Vietnam said that there are plethora of opportunities for Vietnamese rice exporters and all they need to do is analyze opportunities and risks and devise an appropriate export plan that benefits both enterprises as well as farmers.
Mr. Trần Thanh Hải, deputy director of the Import-Export Department said that since India, the leading rice exporter continues with the ban on overseas shipments of broken rice, Vietnam has an opportunity like never before to benefit from the strong demand from countries like China, the Philippines and Indonesia and boost their rice exports to around 7 million tonnes by year end.
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