| Indian government decides not to allow export of basmati rice below $1,200/ton India decides to allow export of rice to Singapore |
On August 30, the Directorate General of Foreign Trade under the Ministry of Commerce and Industry of India announced its decision to allocate rice export quotas to three countries including Bhutan, Singapore and Mauritius.
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| World rice prices are strongly affected by decisions made by India - the world's leading rice exporter. |
According to this decision, the amount of rice that India agreed to export to Bhutan is 79,000 tons, Singapore 50,000 tons and Mauritius 14,000 tons. All are non-white rice - Basmati.
In addition to the above decision, the country also allowed the export of non-white Basmati rice shipments that were stuck at the port (due to the sudden export ban on July 20). These shipments will still be subject to the 20% tax rate as per the previous tax imposition regulation (September 9, 2022).
Earlier, according to the Federation of Indian Rice Exporters, about 150,000 tonnes of non-white Basmati rice of this type were stuck at various ports. The shipments will help both exporters and importers, mainly the economically troubled East and West African countries.
Thus, with both of the above decisions, India's total upcoming rice export volume will be around 300,000 tons.
Regarding the above decisions of India, a Vietnamese rice export trader based in Ho Chi Minh City said that although India banned rice exports through the trading channel, it left open the inter-governmental negotiation channel. Although the current announced figure may be very small compared to the current demand of the world, it also opens up opportunities for rice imports through special diplomatic channels.
Commenting on the current rice price situation, many experts say that the trend of increasing rice prices may happen again in September because one of the important sources of supply, Myanmar, is considering temporarily suspending rice exports.
In fact, on August 30, the world's second largest rice exporter, Thailand, adjusted its rice price up to 646 USD/ton for 5% broken rice (an increase of 34 USD/ton). According to this adjustment, Thai rice is 3 USD higher than the same grade of Vietnamese rice (the same grade of Vietnamese rice is currently priced at 643 USD/ton - according to the Vietnam Food Association).
Official prices announced by the Thai Rice Exporters Association show that current prices are still slightly lower than the peak on August 9, when 5% broken rice was at $648 per tonne and 25% broken rice was at $612 per tonne.
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