The year 2022 did not live up to its expectations and there’s certainly no doubt in this regard. While people believed the year to support recovery and take things back to normal, the series of events in the year 2022, took no time to smash the pre-set notions that people already had. At the start of the year, started the Russia-Ukraine war, and the war between the two biggest grain producers and exporters of the world pushed several nations to the brink of a severe food crisis.
While the disruptions in the supply chain, leading to grain shortages in different parts of the world and raised troubles for several nations, for some it did act as a boon as well. And for the Asian country Vietnam, the latter appears to be true.
Located in Asia, Vietnam is making use of the favorable situations to grow its rice shipments and if statistics are to be believed, the country’s rice exports are estimated to grow by 15.7% by the end of the year 2022.
The Number Game
Vietnam’s Ministry of Agricultural and Rural Development released data lately according to which the country exported around 600,000 million tonnes of rice and realized a revenue of US$296 million, in the month of November itself.
What makes this number significant is the fact that Vietnam achieved this feat despite the high prices of Vietnamese rice in the global markets. Currently, Vietnam’s 5% broken rice is as high as US$ 438 per ton, whereas the prices of Thai rice and Indian-origin rice range from US$13-28 to US$60-65 per ton respectively. Continuing its good run, Vietnam in the month of December has exported around 550,000 tonnes of rice which is 11.3% more than the rice exports in December last year.
As per government data, Vietnam’s rice exports in the year 2022 will grow by 15.7% YoY and the revenue from rice exports during the same period is estimated to be up by 7% to stand at $3.5 billion by the end of the year.
The Driving Force Behind Vietnam’s High Rice Exports
Being in Asia, Vietnam just like India enjoys favorable climatic conditions for rice cultivation. However, what pushed the country’s rice exports is the war between Russia and Ukraine.
The Russian invasion of Ukraine started on the 24th of February, 2022, and the war between the top two wheat producers and exporters of the world primarily made consumers shift from wheat to rice for their daily consumption needs.
Further insufficient rainfall in rice growing states of India which forced the country to curb its rice exports provided a boost to Vietnam’s rice exports.
The Bottom Line
The Russia-Ukraine war and adverse weather conditions have forced its competitor and the world’s largest Rice Exporter to curb its rice exports, Vietnam is enjoying high demand for its rice in the global markets. And, riding on the back of robust demand, Vietnam is exporting record volumes of rice this year. Analyzing the trend, Vietnam’s rice exports are expected to grow 15.7% YoY in the year 2022.
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