India’s move to impose tariffs and suspend exports of broken rice is making the world market volatile. Within a week, Vietnam’s export rice price increased by more than 30 USD/ton.
Talking to Tien Phong, Mr. Nguyen Van Don – Director of Viet Hung Co., Ltd. – said that India’s imposition of 20% tax on exported rice and the suspension of broken rice exports are causing the world rice market to fluctuate strongly.
In the past few days, Vietnam’s export rice price has continuously increased, about 30 USD/ton compared to the beginning of September.
“Vietnamese businesses are very excited because rice exports are priced well. Recently, the purchase price of businesses for rice and farmers’ rice has also improved gradually,” said Mr. Don.
According to Mr. Don, in the last summer-autumn crop, businesses bought a large amount of reserve rice, so this is a golden time for businesses to export. Many foreign partners are also turning to Vietnam, Thailand… to replace them, so businesses expect to have many new orders.
Mr. Don forecast that from now until the end of the year, the world rice market may increase even more.
According to businesses, the price of rice for export on the world market is increasing rapidly and may increase further in the coming time.
As noted by Tien Phong, on September 15, the price of Vietnamese 5% broken rice was offered at $410/ton, up about 20 USD from last week.
According to Mr. Pham Thai Binh – Director of Trung An High-tech Agriculture Joint Stock Company, so far, India’s rice export volume is larger than that of Vietnam and Thailand combined. Therefore, a decrease in the amount of rice exported from this country will increase the pressure on world food prices, which are already high due to pressure from drought and the impact of the Russian-Ukrainian conflict.
Mr. Binh assessed that India’s suspension of rice exports is pushing up world rice prices sharply. However, in terms of orders, Vietnam may not benefit much. Because India’s rice market is mainly Africa, while transportation costs from Vietnam to these markets are very high. “Currently, businesses are not in a hurry to sign new contracts because they are waiting for more market conditions,” this person informed.
Mr. Nguyen Ngoc Nam – Chairman of the Vietnam Food Association (VFA) – said that for a long time, Vietnamese rice has always been competitive with Indian and Thai rice in terms of price.
Previously, India exported about 8-9 million tons of rice per year, but in recent years, India’s rice exports have doubled and reached more than 21 million tons (in 2021), causing the export price of rice in the market to decrease.
“Recently, Vietnam and Thailand have discussed solutions to raise rice prices, helping farmers get profits. Therefore, India’s move to impose a 20% tax on rice exports may be an opportunity for Vietnamese and Thai rice,” said Mr. Nam, adding that in the coming time, rice prices may increase further. People can be excited to produce the winter-spring crop of 2023.